The manufacturing line of a NEV factory in Southwest China's Chongqing Municipality Photo: VCG

China's domestic sales of new-energy passenger cars surpassed those of gasoline-powered cars for the first time in July, showcasing resilient growth momentum and the robust market potential of the new-energy vehicle (NEV) sector, despite rising protectionist pressures from the West.

Retail sales of NEVs rose 36.9 percent year-on-year to 878,000 units, according to statistics released by the China Passenger Car Association (CPCA) on Thursday. 

NEVs as a portion of monthly retail sales reached 51.1 percent, topping 50 percent for the first time, meaning that in China, a majority of consumers opted for NEVs when purchasing passenger cars.

Sales of NEVs in July exceeded expectations, partly due to support measures that unleashed consumer demand, including the recent rollout of the vehicle trade-in policy for cars that were scrapped and replaced, the CPCA said in an analysis on Thursday.

Experts said that China's NEV sector is expected to maintain steady growth momentum in the second half of 2024, driven by the country's outstanding industry competitiveness, continuous innovation capabilities, and solid domestic market support, despite intensifying protectionist pressures from some Western countries.

In July, China's NEV exports reached 92,000 units, up 1.3 percent year-on-year. From January to July, exports surged 17.8 percent year-on-year, the CPCA data showed.

Cui Dongshu, secretary-general of the CPCA, told the Global Times on Thursday that the year-on-year rebound in NEV exports indicated that the industry overcame a seasonal downturn, with growth set to continue in the second half of the year.

US-based Tesla exported 27,890 China-made NEVs in July, ranking second to BYD's 30,014. Tesla's sales witnessed a significant increase from the June figure of 11,746, which highlighted the strength of China's NEV supply chain and its role in enhancing the global competitiveness of foreign brands.

Exports of NEVs by joint ventures and luxury brands grew 25 percent year-on-year in July, according to the CPCA.

"Despite mounting global protectionism targeting Chinese NEVs, the industry is expected to maintain a stable growth trajectory in the coming months, thanks to its ongoing technological innovation and upgrades in domestic auto products, alongside the advancement of its international expansion strategies," Wu Shuocheng, a veteran automobile industry analyst, told the Global Times on Thursday.