Lafaek News-BEIJING, Sept. 10 (Xinhua) — The dominant position of new energy vehicles (NEVs) in China’s auto market was further consolidated in August, with NEV sales accounting for a record 60.6 percent of the monthly new car sales, industry data showed on Thursday.

In August, NEV output and sales reached over 1.65 million and 1.64 million units, respectively, both up nearly 20 percent year on year, according to data from the China Association of Automobile Manufacturers (CAAM).

Overall auto output and sales in August stood at 2.68 million and 2.71 million units, respectively. CAAM Deputy Secretary-General Chen Shihua attributed the month-on-month growth in auto production and sales mainly to the sustained auto consumption subsidies.

A fresh round of upgraded auto consumption subsidy measures has been rolled out across multiple cities, with a focus on streamlining application procedures, increasing subsidy amounts, and expanding the range of eligible vehicles.

Analysts noted that the upgraded subsidy policies, supported by tangible financial backing, have lowered the threshold for current car owners to trade in and upgrade their vehicles. These measures have boosted consumer confidence and converted hesitant demand into actual orders, invigorating the auto market.

China’s vehicle exports continued to grow rapidly, with monthly export volume exceeding 1 million units for three consecutive months.

In August, vehicle exports reached 1.01 million units, up 65.3 percent year on year. Notably, NEV exports of the month rose 1.3-fold to 526,000 units.

In the first eight months, auto exports totaled 7.15 million units, up 66.7 percent year on year, including 3.44 million NEVs, a 1.2-fold increase.

NEVs have accounted for more than 50 percent of China’s total auto exports for three consecutive months, which means one out of every two exported vehicles is an NEV.

This fundamental change in export structure shows that China’s auto exports are shifting toward an NEV-led model and opening up global markets through the electrification technology route, Chen said.

Behind the strong sales and export figures, China’s auto industry is undergoing a deeper transformation driven by a series of policy measures aimed at steering the sector toward high-quality development.

In early September, China issued a notice on regulating supplier payment and optimizing account period management for auto enterprises, aiming to further regulate the competition in the NEV industry and foster a fair, just, honest and mutually beneficial cooperative relationship between vehicle manufacturers and parts suppliers.

The notice encourages automakers to complete payments to small and medium-sized supplier enterprises within 30 days of goods acceptance, with a maximum of 60 days, and encourages cash payments.

Separately, China issued a guideline to regulate automakers’ overseas competitive practices and strengthen compliance, so as to promote the sound and orderly global expansion of the country’s auto industry.

The guideline focuses on overseas marketing and covers compliance in production safety, quality management, labor protection and data security, encourages cost-based pricing in accordance with international market supply and demand and urges automakers not to disrupt competition for unfair advantages.

A Ministry of Commerce official said the guideline emphasizes legal compliance, fair competition and win-win cooperation, helping Chinese automakers fulfill social responsibilities overseas and integrate into host countries.

China’s auto exports are entering a phase where quality, rather than sheer volume, should be the priority, Chen noted.

The outline of the 15th Five-Year Plan (2026-2030) has called for accelerating the development of strategic emerging industries such as intelligent connected NEVs. The country also aims to increase the share of NEVs in the total vehicle fleet to 30 percent by 2030, according to an action plan for carbon peaking during the period.