Petrol cars pushed out of China’s top 10 as EV market share hits record high

So-called 'new-energy vehicles' accounted for a record 62.9 per cent of new-vehicle retail sales in China in May 2026, with electric vehicles (EVs) occupying the first seven places on the sales charts.

EVs accounted for a total of eight of the top 10 spots, with the other top 10 finishers being vehicles offered with plug-in hybrid (PHEV) and extended-range electric vehicle (EREV) powertrains. The term 'new-energy vehicle' comprises EVs, PHEVs and EREVs, and therefore the entire top 10 consisted of NEVs.

According to Electrek, citing data from the China Passenger Car Association (CPCA), the Geely Xingyuan (aka EX2) electric hatch – due in Australia later this year – was the country's best-selling vehicle.

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It sat ahead of the Tesla Model Y and Xiaomi SU7 (not sold here) EVs in second and third respectively. There were no pure combustion-powered vehicles in the top 10.

The Model Y was also the best-selling vehicle of all fuel types in Australia in May, overtaking the Ford Ranger and becoming the first EV to top the local sales charts.

It led a surge in demand that saw EVs claim a record 19.9 per cent market share in Australia, surpassing the previous record of 16.4 per cent set a month earlier.

An analysis of CPCA data shows EVs accounted for approximately 42 per cent of the 1.51 million new-vehicle retail sales in May 2026, a record. This increased share for EVs in China came as the market share of internal-combustion engine (ICE) vehicles fell from 47 per cent in May 2025 to 37.1 per cent last month.

New-energy vehicle sales were down 7.5 per cent year over year in a market that was down 22.1 per cent, but this was due to a 24 per cent drop in PHEV sales and a 28 per cent drop in EREV sales.

Retail sales of pure EVs, in contrast, were up by 3.9 per cent. This has been attributed to rising fuel costs following higher oil prices linked to conflict between the United States and Iran, which also pushed petrol and diesel prices higher in Australia.

The record result also came despite China reducing its trade-in subsidies for 2026, lowering incentives on cheaper EVs while introducing a more gradual incentive structure across the broader EV market.

Among the standout figures for May, Chery exported 181,871 vehicles, almost three-quarters of its total monthly production across all brands, including Omoda Jaecoo models sold in Australia.

BYD also set a brand export record with 160,644 vehicles shipped overseas in May, including nearly 5000 vehicles – among them the Shark 6 plug-in hybrid ute – aboard the BYD Zhengzhou vessel bound for Australia as the brand tripled its previous intake volume here.

The brand secured second place in the Australian sales charts in both April and May, behind only market leader Toyota, whose sales are down by just over 30 per cent year-to-date.

More than one in three new vehicles sold in Australia in May were manufactured in China – including the top-selling Model Y – while Chinese brands accounted for four of the country's 10 best-selling marques last month.

MORE: VFACTS May 2026: Tesla Model Y tops the charts as EV sales surge in Australia's new-vehicle market