China's automotive sector reached a historic turning point last month as new energy vehicles (NEVs) claimed over 50% of all new car sales for the first time, according to data released by the China Association of Automobile Manufacturers (CAAM) on Tuesday. The milestone underscores the rapid transformation of the world's largest auto market amid global climate commitments.
NEVs, which include battery-electric and plug-in hybrid vehicles, accounted for 52% of total sales in October 2025. This surge aligns with the Chinese mainland's ambitious 'dual carbon' goals to peak emissions by 2030 and achieve carbon neutrality by 2060. Analysts attribute the growth to sustained government subsidies, expanded charging infrastructure, and competitive pricing from domestic brands like BYD and NIO.
"This isn't just a market shift—it's a strategic realignment," said Dr. Li Wei, an automotive analyst at Tsinghua University. "By 2025's end, we project NEVs will constitute 60% of annual sales, putting China years ahead of initial targets."
The transition has ripple effects across global supply chains, with Chinese automakers securing lithium partnerships in Latin America and Southeast Asia. Meanwhile, European and North American manufacturers are accelerating local joint ventures to access China's NEV ecosystem.
As the UN Climate Change Conference (COP31) approaches, China's NEV progress is expected to feature prominently in discussions about emerging economies' decarbonization pathways.
