China EV Deliveries Decline Year-over-Year for Six Consecutive Months
Alina Collins
China's new-energy vehicle deliveries hit 1.04 million in June, down 7% year-on-year for the sixth consecutive monthly decline, as cautious buyers and fading subsidies squeeze roughly 30 EV makers' margins.
How bad is the first-half picture?
CPCA preliminary data: June BEV and PHEV deliveries reached 1.04 million units, down 7% year-on-year.
First-half cumulative deliveries totaled 4.73 million, a 13% drop. This means → it is not a one-month blip but a sustained six-month contraction.
In plain terms = the market is not "slowing down" — it is shrinking.
What are buyers waiting for?
Tian Maowei, sales manager at Shanghai Yiyou Auto Services, said consumer confidence is weak and buyers are holding out for further price cuts.
This reflects a vicious cycle: the more prices drop, the more buyers expect another round — and the longer they wait.
AlixPartners forecast last week that 2026 China passenger-vehicle sales will fall 27.7% year-on-year, citing economic instability and weaker government subsidies.
Can the price war continue?
Analysts say soft domestic demand is fueling expectations of another price-war round — but deeper cuts will squeeze margins across roughly 30 Chinese EV makers.
Only three Chinese automakers are profitable in the BEV segment: BYD, Leapmotor, and Xiaomi. About 20 others produce both EVs and combustion vehicles.
This means → the vast majority are selling at a loss. Every extra day of price war raises the risk of elimination.
What to watch in the second half?
Profitability concentrated in just three companies signals that consolidation pressure keeps building.
The key question: can the price war sustain itself without triggering mass-scale losses?
In plain terms = if cuts cannot stop and losses cannot hold, the second half may bring a wave of exits or forced mergers.
Content is for reference only, not financial advice.