China's NEV market emerges as key driver of global growth

The global new energy vehicle (NEV) market is expanding rapidly, with NEVs now accounting for more than 25% of global vehicle sales, an official from China's Ministry of Industry and Information Technology said at the 2026 World New Energy Vehicle Congress on Tuesday.

China's auto market has entered a stage led by NEVs, which have become an important driver of growth in the country's automotive sector.

Experts said China has become a core engine of the global large-scale development of NEVs.

In the first eight months of 2026, both NEV production and sales in China exceeded 10 million units.

The development of the NEV market, however, remains uneven across different regions.

Europe's transition toward electric mobility is progressing steadily.

China Media Group (CMG) reported that in August 2026, registrations of battery electric vehicles in 16 major European markets exceeded 200,000, with a market share of more than 30%.

In emerging markets such as Southeast Asia and the Middle East, however, NEV penetration remains below 10%.

Even in major automobile markets such as the United States and Japan, the penetration rate is also below 10%.

Zhang Xuming, secretary-general of the World New Energy Vehicle Development Organization, said limited competition and relatively high prices, insufficient charging infrastructure, and fluctuations in policy can affect the development of NEV markets and consumer confidence.

As China's NEV industry has rapidly expanded, cooperation with international markets has also deepened.

China-Germany cooperation in the NEV sector is developing toward what industry experts describe as "two-way empowerment," with cooperation moving beyond traditional market and manufacturing partnerships toward technology research and development and industrial-chain coordination.

A recent survey by the German Chamber of Commerce in China showed that over the past two years, the proportion of German automotive companies conducting R&D in China while serving both the Chinese and global markets increased from 12% to 33%.

Meanwhile, 81% of German companies operating in China said localized R&D had accelerated their development process.