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China’s electric vehicle (EV) market continued its downward slide in June, with deliveries failing to match year-on-year numbers for the sixth consecutive month, according to preliminary data from the China Passenger Car Association. A total of 1.04 million pure electric and plug-in hybrid cars were handed to customers in mainland China last month, down 7 per cent from the same period in 2025. During the first half of 2026, EV deliveries in the world’s largest automotive and electric car market fell 13 per cent from a year earlier to 4.73 million units.

Coverage comparison

Reports on the market’s struggles paint a mixed picture: overall industry figures show a persistent downturn, while specific companies buck the trend with record sales. One set of data focuses on the aggregate decline and its causes, highlighting weak consumer sentiment and a 'wait-and-see' attitude among budget-conscious shoppers. Another report details how certain EV makers—Leapmotor and Zeekr—have managed to achieve record deliveries despite the broader slump, thanks to technological advancements and aggressive pricing. A third report, based on a forecast by global consultancy AlixPartners, offers a stark prediction for the entire light vehicle market, warning of a price war that could ensnare nearly all carmakers.

Key claims

Overall market decline

June marked the sixth straight month that EV deliveries failed to match year-on-year figures, according to preliminary data from the China Passenger Car Association. The 7 per cent drop in June followed a 13 per cent fall in first-half deliveries to 4.73 million units.

Weak consumer sentiment and budget-conscious consumers taking a 'wait-and-see' attitude are affecting the EV market, said Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai. "Shoppers are expecting car brands to further slash prices of their vehicles as they take a 'wait-and-see' attitude," he said.

Profitability concerns

Only three Chinese EV assemblers—BYD, Leapmotor and Xiaomi—are currently profitable, according to analysts. Price wars are expected to affect nearly all 30 Chinese EV makers as profit margins thin, the reports said. The ongoing decline in deliveries has exacerbated worries about the profitability of Chinese EV firms.

AlixPartners forecast

Global consultancy AlixPartners issued what it called the most bearish Chinese car market forecast by an international bank or consultancy, predicting a 10 per cent fall in deliveries this year. The firm forecast that 24.6 million light vehicles would be delivered by Chinese carmakers this year, with 10 million of those to be exported. Domestic deliveries are expected to total 14.6 million, representing a 27.7 per cent year-on-year decline.

Sales of light vehicles—passenger cars and pickups—slumped 18 per cent in the first five months of this year after Beijing adjusted its subsidy policy and phased out a sales tax holiday. AlixPartners said the predicted 41 per cent year-on-year increase in exports this year, spurred by cost and technological advantages of Chinese-made cars, would not be enough to cushion against an overall fall in sales.

Stephen Dyer, Asia-Pacific leader of the automotive and industrial practice at AlixPartners, said: "Profitability is no longer driven by scale, but increasingly by how efficiently companies are organised, how quickly they adapt product cycles, and how effectively they integrate design, engineering and commercialisation. We expect a widening gap between winners and the rest of the industry, with consolidation becoming a structural outcome rather than a cyclical one."

Challengers buck the trend

While the overall market declined, some companies posted record deliveries in June. Leapmotor delivered 93,376 electric vehicles in June, up 94.5 per cent year on year, rewriting its sales record for a second consecutive month. Zeekr, a premium EV unit of Geely Auto, delivered 35,169 units in June, up 110.6 per cent year on year, also a record for the second straight month.

"The two carmakers, along with Xpeng, Nio and Xiaomi, are emerging as the winners of China’s EV market this year, but they represent just a small portion of the country’s EV industry," said Eric Han, a senior manager at Shanghai consultancy Suolei. "Their technological advancement and fancy new models effectively spurred a sales jump."

Leapmotor, backed by Stellantis, builds and sells midsize smart EVs at roughly half the price of comparable Tesla models. Tesla has yet to announce its June delivery volume in China, but its Shanghai Gigafactory now assembles only Model 3 and Model Y vehicles priced above 200,000 yuan (US$29,441). In May, Tesla’s Shanghai factory delivered 47,281 vehicles to customers in mainland China, up 22.5 per cent year on year, according to data from the China Passenger Car Association.