New car sales in mainland China saw electric vehicles make up an all-time high of 66.7 percent during the first week of June, highlighting how the nation's battery-operated vehicle manufacturers are gaining advantages amid the worldwide energy shortage.
Of the new cars sold on the Chinese mainland during the week ending June 7, two-thirds were fully electric or plug-in hybrids, as reported by the China Passenger Car Association (CPCA).
The percentage of infiltration increased to 62.9 percent in May amid a surge of new smart EV models helped sustain consumer demand.
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China's electric vehicle manufacturers have received an unforeseen boost due to the Middle East conflict," noted Eric Han, a senior executive at Shanghai-based advisory firm Suolei. "Gasoline-powered vehicles might be losing their momentum.
New energy vehicle shipments on the Chinese mainland surpassed 152,000 units between June 1 and 7, marking an 8 percent increase compared to the same timeframe last month, according to CPCA figures.
A robust showing occurred even with decreased governmental backing. Electric vehicle sales began slowly this year following Beijing's cutback on subsidies and tax benefits.
Consumers purchasing an electric car worth 100,000 yuan (US$14,765) currently get a discount of 12,000 yuan, which represents a 40 percent reduction compared to the previous year. Meanwhile, buyers who once had exemption from the 10 percent vehicle acquisition tax must now pay a 5 percent fee as officials slowly reduce support measures.
The conflict between the U.S., Israel, and Iran, starting on February 28, along with Tehran's later restriction of access through the Strait of Hormuz—a vital maritime passage responsible for approximately one-quarter of worldwide oil shipments—has become a new driver for electric vehicle interest. Shoppers worried over increasing gasoline prices have progressively moved towards non-petrol cars since March.
The price of Brent crude increased by over 60 percent from February 28 to April 29, after which it declined. It has now dropped by 27 percent, reaching approximately $86 per barrel.
In early March, UBS projected that if oil prices stayed near $90 per barrel, yearly gasoline costs for car drivers could increase by approximately 2,000 yuan.
The change in customer tastes has grown more evident. In May, none of the top-selling car models in the nation were from Chinese gasoline-powered brands, marking a historic moment for the industry.
Chinese EV manufacturers, from BYD The world's biggest electric vehicle manufacturer, joined forces with Stellantis-supported Leapmotor, sped up its product releases during the Auto China exhibition in Beijing towards the end of April.
Several of the latest models included budget-friendly options autonomous-driving functions - advanced batteries with superior performance and more complex digital dashboards, encouraging a new surge in consumer purchases driven by interest in cutting-edge technology. - enhanced battery efficiency combined with ever-more advanced digital interiors, prompting a renewed rush of buyers looking for innovative features. - improved power storage solutions along with highly developed digital interfaces, fueling an upswing in demand from tech-savvy customers. - next-generation batteries paired with smarter cockpit systems, leading to increased buyer enthusiasm seeking modern technological advancements. - better-performing energy sources alongside more intricate digital control panels, contributing to a growing trend of consumers wanting the latest innovations.
As stated by the CPCA, approximately 70 percent of worldwide electric vehicle sales occurred in mainland China in 2025.
Meanwhile, global companies like Volkswagen and Toyota experienced a decline in market share due to their delayed shift towards electric vehicles.
Foreign carmakers A combined 30.3 percent stake in the Chinese market was recorded in April, according to CPCA figures, marking a decrease from 39.8 percent during the first quarter. The overall market share reached 34.7 percent throughout the entire year of 2025.
Although there has been an increase in interest for electric vehicles, certain experts still hold a conservative view regarding the overall market perspective.
In January, Deutsche Bank predicted that overall car sales in China — covering both electric vehicles and traditional gasoline models — would drop by 5 percent this year, whereas UBS anticipated a 2 percent decrease, pointing to excess production capacity and lower governmental backing.
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