China’s new energy vehicle market saw a strong rebound in June, while major policy and safety changes reshaped the industry outlook. Leapmotor led emerging EV brands with 93,376 deliveries, while NIO and XPeng both surpassed 40,000 units. BYD remained the overall leader with 403,500 vehicles sold, and overseas exports hit a record high.

Market Recovery in June

According to industry estimates, China’s NEV passenger vehicle wholesale volume reached 1.51 million units in June 2026, up 22% year-on-year and 12% month-on-month. NEVs continue to serve as the main growth driver of China’s passenger vehicle market.

Major Policy Changes

From 2027, China will cancel vehicle and vessel tax exemptions for new energy vehicles, marking the gradual withdrawal of a policy benefit that has been in place for 15 years. This signals a shift from policy-driven growth toward more market-oriented competition.

Meanwhile, two new mandatory national safety standards for electric vehicles and power batteries officially took effect on July 1. The updated standards require power batteries not to catch fire or explode after thermal runaway, setting a new mandatory safety threshold for the industry.

June Sales: Leapmotor Leads Emerging Brands

BYD sold 403,500 vehicles in June, maintaining its leading position. Overseas exports reached 174,900 units, up 95% year-on-year, setting a new monthly record.

Among emerging EV brands:

• Leapmotor: 93,376 units, up 94.5%
• Harmony Intelligent Mobility Alliance: 50,624 units
• NIO: 40,597 units, up 62.9%
• XPeng: 40,126 units, up 15.9%
• Li Auto: 30,895 units, down 14.8%
• Xiaomi Auto: over 30,000 units

Traditional automakers also delivered strong NEV results, with Geely NEV at 161,449 units and Chery NEV at 103,428 units.

New Model Launches Accelerate

Several major models entered the market during the week. XPeng MONA L03 opened pre-sales from RMB 143,800, offering both BEV and range-extended versions. BYD Seal 08 launched from RMB 196,900, featuring God’s Eye B intelligent driving system as standard. Lynk & Co 07GT began pre-sales from RMB 165,800, while the all-new BMW X5 made its global debut with fuel, plug-in hybrid and pure electric powertrain options.

Battery Technology Enters a New Phase

The Ministry of Industry and Information Technology has identified lithium-rich manganese-based cathodes, silicon-based anodes and solid-state electrolytes as key directions for next-generation battery development.

The industry is also accelerating semi-solid and solid-state battery commercialization. In 2026, semi-solid battery installations are expected to reach 600,000–700,000 vehicles, while several automakers are preparing solid-state battery test vehicles for the second half of the year.

China’s NEV industry is entering a new stage defined by stronger sales momentum, stricter safety standards, reduced policy dependence and faster technological upgrading.