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China’s EV deliveries remain stuck in downward spiral, exacerbating industry worries

China’s electric vehicle (EV) deliveries in June failed to match their year-on-year numbers for the sixth month in a row, even as carmakers offered promotions…

By Samantha Johnson / July 6, 2026
China’s electric vehicle (EV) deliveries in June failed to match their year-on-year numbers for the sixth month in a row, even as carmakers offered promotions to attract budget-conscious consumers, exacerbating worries about Chinese EV firms’ profitability.

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, preliminary data from the China Passenger Car Association showed.

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.

“Weak consumer sentiment bodes ill for the EV market this year,” 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.”

Last week, global consultancy AlixPartners predicted sales of light vehicles – passenger cars and pickups – would slump 27.7 per cent year on year in 2026, owing to a shaky economy and softening government support.

Expectations for a new round of price wars have heightened amid a weak domestic market, but further price cuts could affect nearly all the 30 Chinese EV makers as their profit margins turn thinner, according to analysts.
Only three Chinese EV assemblers – BYD, Leapmotor and Xiaomi – are profitable at present. Another 20 or so manufacturers make both EVs and petrol cars.

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