A BYD Qin Plus DM-i (symbolic image)Image: BYDChina recorded wholesale sales of 1.252 million new energy vehicles (NEVs) in March, according to the China Association of Automobile Manufacturers (CAAM). Under the Chinese definition, NEVs include battery-electric vehicles, plug-in hybrids and fuel cell vehicles. The figures cover all vehicles produced in China, including those sold domestically and for export.In March 2026, NEV wholesale sales rose by 1.2 per cent year-on-year and by 63.7 per cent compared to February.However, this modest increase in overall figures was primarily driven by strong demand abroad, rather than domestic demand in China—a shift from the long-standing trend. In March, 371,000 electric cars and plug-in hybrids were exported, marking a 130 per cent increase compared to March 2025 and a 31.6 per cent rise compared to February 2026. Retail sales—referring to NEVs sold within China—stood at 882,000 units in March, reflecting an 18.3 per cent year-on-year decline. Compared to February, which is traditionally the weakest month due to the multi-day celebrations for Chinese New Year, sales surged by 82.4 per cent.In terms of wholesale sales, 43.2 per cent of all new vehicles in March were NEVs, meaning they featured an electrified powertrain. Across all drive types, wholesale sales totalled 2.899 million vehicles, 0.6 per cent below the previous year’s figure. This continues the trend of NEV penetration in the first quarter of 2026 slightly exceeding the levels seen in 2025. However, the increase is only marginal and no longer matches the significant growth observed from 2024 to 2025 at the start of 2026. This slowdown may also be attributed to the expiry of several incentive measures for NEVs at the end of 2025.The expiry of these incentives is also weighing on retail sales in China. As domestic demand posted double-digit declines, many manufacturers are redirecting China-built electric vehicles to overseas markets. The trend towards rapid international expansion, already evident in recent months, is thus gaining further momentum. Since the fourth quarter of 2025, exports – which had stagnated at around 200,000 units per month – have accelerated significantly.Of the 1.252 million NEVs recorded in wholesale, 831,000 were battery-electric vehicles, up 3.2 per cent year-on-year and 71.7 per cent compared to February. BEVs thus accounted for 66.4 per cent of total NEV sales. In exports, however, BEVs made up 217,000 units, or 58.5 per cent of the total.Plug-in hybrid vehicles in wholesale declined by 3.2 per cent year-on-year to 421,000 units but increased by 50.4 per cent compared to February. PHEV exports surged by 180 per cent to 153,000 units, while domestic demand fell to 268,000 units.cnevpost.com