China's NEV market emerges as key driver of global growth

The global new energy vehicle (NEV) market is expanding rapidly, with NEVs now accounting for more than 25% of global vehicle sales, an official from China's Ministry of Industry and Information Technology said at the 2026 World New Energy Vehicle Congress on Tuesday.

China's auto market has entered a stage led by NEVs, which have become an important driver of growth in the country's automotive sector.

Experts said China has become a core engine of the global large-scale development of NEVs. In the first eight months of 2026, both NEV production and sales in China exceeded 10 million units.

The development of the NEV market, however, remains uneven across different regions.

Europe's transition toward electric mobility is progressing steadily. China Media Group (CMG) reported that in August 2026, registrations of battery electric vehicles in 16 major European markets exceeded 200,000, with a market share of more than 30%. In emerging markets such as Southeast Asia and the Middle East, however, NEV penetration remains below 10%. Even in major automobile markets such as the United States and Japan, the penetration rate is also below 10%.

Zhang Xuming, secretary-general of the World New Energy Vehicle Development Organization, said limited competition and relatively high prices, insufficient charging infrastructure, and fluctuations in policy can affect the development of NEV markets and consumer confidence.

As China's NEV industry has rapidly expanded, cooperation with international markets has also deepened.

China-Germany cooperation in the NEV sector is developing toward what industry experts describe as "two-way empowerment," with cooperation moving beyond traditional market and manufacturing partnerships toward technology research and development and industrial-chain coordination.

A recent survey by the German Chamber of Commerce in China showed that over the past two years, the proportion of German automotive companies conducting R&D in China while serving both the Chinese and global markets increased from 12% to 33%. Meanwhile, 81% of German companies operating in China said localized R&D had accelerated their development process.

Chinese NEV companies are also expanding into overseas markets, including Southeast Asia, bringing their industrial chains and production capacity to local markets.

CMG reported that in Thailand, seven Chinese automakers have invested in factories, with total investment exceeding $3 billion, according to information presented at the event.

Chinese companies are also working with local suppliers. Changan Automobile's plant in Thailand has connected with more than 40 Thai auto parts suppliers and brought 10 core suppliers to establish operations in Thailand.

The International Energy Agency's Global EV Outlook 2026 estimates that global electric vehicle sales will reach 23 million units in 2026, accounting for nearly 30% of global new-car sales. By 2035, electric vehicles could account for close to 50% of global vehicle sales.

Experts said China will continue to leverage its strengths in the NEV industry over the coming decade, strengthen international cooperation and bring more NEV product choices to global markets.