China’s electric vehicle industry continues to consolidate its position in the domestic automotive market, with new energy vehicles accounting for a growing proportion of total car sales.

Figures released by the China Association of Automobile Manufacturers on November 11 showed that domestic automobile production and sales both exceeded three million units in October.

New energy vehicle production reached 2.017 million units, while sales totalled 1.94 million. These figures represented year-on-year increases of 13.8 per cent and 13.1 per cent respectively.

New energy vehicles accounted for 64.3 per cent of all new vehicle sales in October, highlighting the rapid transformation of China’s automotive industry.

Between January and October, the cumulative share of new energy vehicles in total car sales reached 54.8 per cent. In the passenger vehicle market, the proportion exceeded 70 per cent in October.

The figures indicate that electric and other new energy vehicles are no longer a small or specialised segment of China’s automotive industry. They have become a major component of the country’s domestic vehicle market.

The transition has been supported by investment in battery technology, charging infrastructure, vehicle software and manufacturing capacity. Chinese manufacturers have also expanded their product ranges, offering vehicles across different price categories.

However, competition remains intense. Domestic manufacturers are competing with one another while facing pressure from international brands seeking to maintain or increase their market share in China.

A separate report from the China Passenger Car Association indicated that retail sales of passenger new energy vehicles during November 1–8 totalled 219,000, down 7 per cent compared with the same period last year. Despite the decline, new energy vehicles accounted for 74.9 per cent of passenger vehicle retail sales during those eight days.

The weekly figures suggest that the market remains highly competitive and that short-term sales movements can differ from the longer-term expansion of the sector.

The continued rise in new energy vehicle adoption is significant for China’s industrial strategy, which places considerable emphasis on advanced manufacturing, battery technology and clean-energy transportation.