China Traces 13-Year Electric Vehicle Shift as Annual Sales Hit 16.49M

China's new energy vehicle (NEV) sector has maintained the world's highest production and sales volume for 11 consecutive years since 2015, according to a joint investigation published by People's Daily and Securities Times. Annual domestic NEV sales expanded from 17,600 units in 2013 to 16.49 million in 2025, lifting market penetration from 0.08% to 47.9%. In the first half of 2026, overseas sales grew 1.2-fold year-on-year, cementing the sector's role as a cornerstone of China's industrial upgrading under the 15th Five-Year Plan.

China's NEV industry has evolved from a lagging participant in internal combustion vehicles into a major driver of global automotive supply chains and high-tech exports. As international trade friction mounts, tracking China's domestic penetration and export expansion provides critical insight into global clean energy competition and industrial policy execution.

China's new energy vehicle (NEV) sector has achieved 11 consecutive years of global leadership in production and sales since 2015, driven by long-term industrial policy and rapid domestic market expansion, according to a comprehensive review published by People's Daily and Securities Times. The retrospective details an unprecedented trajectory of growth over the past 13 years. Annual NEV sales inside China surged from approximately 17,600 vehicles in 2013 to 16.49 million vehicles in 2025—a growth factor of more than 930 times. Over the same period, market penetration for newly sold NEVs jumped from 0.08% to 47.9%, establishing a strategic emerging industry valued in the trillions of yuan. According to the state media review, one out of every three cars sold globally is manufactured in China, while two out of every three passenger vehicles sold domestically are now new energy vehicles. In the first half of 2026, export demand continued to outpace domestic baseline growth, with overseas sales increasing by 1.2 times year-on-year. The review traces this transition back to 2014, when Chinese leadership designated NEVs as the primary pathway for the country to transform from a large automotive consumer into a global automotive power. Before this pivot, China had led global total auto sales since 2009 but remained reliant on foreign internal combustion engine technologies under joint-venture arrangements. Early milestones, such as the December 2008 commercial launch of BYD's F3DM—the world's first mass-produced plug-in hybrid passenger car—demonstrated early consumer interest, though broad domestic industry adoption remained hesitant until comprehensive policy support materialized. Coinciding with the 70th anniversary of China's first domestically produced vehicle at the Changchun First Automobile Works in July 1956, policymakers are using the start of the 15th Five-Year Plan to evaluate industrial priorities through 2035. Moving forward, authorities emphasize expanding core technology self-reliance and consolidating global competitive advantages across vehicle platforms and key components.