China Passenger Car Association Cites Fuel Price Inversion, Supply Optimization, and Exports as Drivers of June NEV Growth

China’s Passenger Car Association (CPCA) said strong growth in new energy passenger vehicles in June was mainly driven by a fuel price inversion, improved supply conditions, and a boost from exports. According to Jin10, the CPCA said high fuel prices accelerated a shift in consumption. It said that disruptions to shipping through the Strait of Hormuz kept China’s domestic retail prices for refined oil products at elevated levels, sharply raising the cost of using traditional fuel vehicles and directly weakening consumers’ willingness to buy them. Against this backdrop, end demand shifted faster toward new energy models, providing firm support for new energy vehicle sales. The CPCA also cited production scheduling optimization and capacity release by automakers. It said major automakers actively promoted a transition from fuel vehicles to new energy vehicles, helping lift the month-on-month increase in June wholesale sales to more than 10%, with supply-side responsiveness accelerating significantly. In addition, the CPCA pointed to rapid growth in overseas markets. It said high international oil prices led to a surge in overseas demand for low-energy-consumption, cost-effective new energy models. It added that domestic brands, supported by mature electrification technology and notable cost advantages, created a strong substitution effect against fuel vehicles in overseas markets, with export volumes expanding steadily and further supporting domestic production and sales.