China’s NEV Market Hits Milestone: Over 50% Penetration in March Sales

China’s electric vehicle market has crossed a critical threshold. According to data released by the China Passenger Car Association (CPCA), new energy vehicles (NEVs) accounted for 51.1% of the country’s passenger car retail sales in March 2025 — marking the first time NEV penetration has exceeded the halfway mark on a monthly basis.

This figure includes both battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). Compared to the same period last year, the NEV share rose by 8.7 percentage points, demonstrating continued strong momentum in China’s green mobility transition.

Domestic automakers led the charge: NEV penetration among Chinese brands reached an impressive 72%, while joint venture brands (primarily foreign automakers like VW, Toyota, and GM) lagged far behind at only 6%. This divergence underscores how homegrown EV players like BYD, NIO, Li Auto, and Xpeng are dominating the domestic shift toward electrification — thanks in part to stronger product-market fit, faster innovation cycles, and aggressive pricing strategies.

March also saw a boost in overall passenger vehicle demand due to government subsidies, spring sales promotions, and the debut of several high-profile EV models such as Xiaomi SU7, BYD Qin L, and Zeekr 007. The CPCA noted that the strong NEV performance is not only a sign of rising consumer confidence but also a reflection of the long-term effectiveness of China’s EV incentives and industrial policy.

As China moves toward its goal of carbon neutrality by 2060, analysts expect NEV penetration to remain above 50% in most months throughout 2025, and approach 70% by the end of the decade — especially as battery costs fall and autonomous driving technologies mature.