In March 2026, the domestic new energy vehicle (NEV) market presented a distinct dichotomy, with domestic retail sales experiencing a slight year-on-year decrease, while export volumes witnessed explosive growth.

According to the latest figures from the China Passenger Car Association, retail sales of new energy passenger vehicles in March reached 848,000 units, marking a 14.4% year-on-year decline. Nevertheless, export volumes surpassed 349,000 units, surging by 139.9% year-on-year and emerging as the primary driver of industry growth.

Domestic Retail: Facing Short-term Challenges, Embracing Ongoing Structural Shifts

The domestic NEV retail market encountered a year-on-year decline in March, with key indicators showing a slight decrease across all segments and a substantial drop in plug-in hybrid sales. Specifically, retail sales of battery electric vehicles (BEVs) stood at 568,000 units, down 11.7% year-on-year; plug-in hybrid electric vehicles (PHEVs) reached 204,000 units, a 23.5% year-on-year decline; and extended-range electric vehicles (EREVs) amounted to 76,000 units, down 6.0% year-on-year.

From a cumulative standpoint, NEV retail sales from January to March 2026 totaled 1.908 million units, still representing a 21.1% year-on-year decrease, continuing the adjustment trend observed since the start of the year. Market analysts attribute the decline in domestic retail sales to a confluence of factors, including the fulfillment of previous consumer demand, heightened market competition, and shifts in the timing of terminal promotions. Additionally, consumers are exercising greater discernment in selecting NEV models, and product structure optimization has also exerted a certain short-term impact on sales data.

Export Market: Doubling Year-on-Year, Expanding Global Reach

In stark contrast to the domestic retail market, NEV exports achieved a new high in March, showcasing remarkable performance with a year-on-year doubling and consistent month-on-month growth. Data reveals that total NEV exports in March reached 349,000 units, surging by 139.9% year-on-year and growing by 29.6% month-on-month. Among these, BEV exports reached 183,000 units, up 100.1% year-on-year; PHEV exports hit 154,000 units, soaring by 199.7% year-on-year; and EREV exports stood at 12,000 units, surging by 345.8% year-on-year, with all segments experiencing significant export growth.

By category, the export growth rates of PHEVs and EREVs are particularly noteworthy, reflecting the continuously improving acceptance of new energy technology routes in overseas markets, especially the gradual emergence of the adaptability advantages of EREV models in certain international markets. From January to March, cumulative exports reached 908,000 units, up 123.7% year-on-year, with both export scale and growth rate reaching unprecedented highs for the same period in history, confirming the ever-increasing global competitiveness of Chinese NEVs.

Despite the short-term pressures faced by the domestic retail market in March, the robust growth of the export market has injected significant momentum into the industry. Based on current trends, NEV exports are expected to sustain a high-growth trajectory. Meanwhile, the domestic market is also anticipated to gradually return to a steady growth path, supported by the recovery of consumer demand, technological innovation iterations, and policy support.