China's combustion-car sales collapsed 40% in August as NEV share hit a record 65.2%

Retail figures published Tuesday by the China Passenger Car Association show internal-combustion passenger cars slumping to roughly 536,000 units in August, a 40% year-on-year drop, while new energy vehicles took an unprecedented 65.2% of the market. Overall passenger car retail volume stood at 1.54 million units — down 23.6% from a year earlier, though 5.5% better than July.

Battery-electric models were the sole powertrain type still expanding, moving about 698,000 units for a 1.7% annual gain and 7.9% month-on-month growth. Plug-in hybrids, by contrast, logged an eighth consecutive monthly decline at 307,000 units, down 25.8%. Within the NEV mix, BEVs now hold a 69.5% share versus 30.6% for PHEVs.

The association tied part of the fuel-car slump to rising running costs: Chinese gasoline prices have been hiked by more than 1,720 yuan per tonne since the start of 2026, including a 180-yuan bump in late July, and 95-octane fuel now averages around 8.7 yuan (about $1.3) per liter.

Exports cushioned the broader downturn. August passenger car shipments abroad climbed 77.8% to 888,000 units, with NEV exports surging 154.7% to 518,000. For January through August, cumulative retail reached 11.7 million vehicles (down 20.8% year-on-year), split 56.9% NEV to 43.1% ICE.