According to the China Association of Automobile Manufacturers (CAAM), the passenger vehicle market maintained structural divergence in June 2026. Domestic demand remained under pressure while exports posted robust growth. Sales of fuel vehicles slumped markedly amid volatile high oil prices, whereas new energy vehicles sustained steady growth with their market share further climbing. In June 2026, passenger vehicle output reached 2.373 million units and sales hit 2.402 million units, rising 5.9% and 6.6% month-on-month, yet falling 2.8% and 5.3% year-on-year respectively. For the first six months of 2026, cumulative production and sales of passenger vehicles stood at 12.721 million units and 12.72 million units, down 5.9% and 6% year-on-year.

In early July 2026, CAAM and the China Passenger Car Association (CPCA) branch successively released data on the auto market for June and H1 2026. CAAM stated that in H1, China’s auto industry operated steadily overall, with cumulative declines in production and sales narrowing month by month. Market flows showed three main divergences: first, domestic demand was under significant pressure, with double-digit declines in sales; second, exports exceeded expectations, providing stable support...... SMM has compiled the relevant data on the auto market for June and H1 2026 for readers' reference. In the automotive sector, CAAM: June Auto Production and Sales Rise MoM; H1 Declines Narrow Further Compared with First Five Months In June, auto production and sales reached 2.76 million and 2.81 million units, up 5.5% and 6.9% MoM respectively, but down 1.2% and 3.2% YoY. January-June, auto production and sales totaled 14.993 million and 15.017 million units, down 4.0% and 4.1% YoY respectively, with the declines narrowing further compared with the first five months. CAAM: NEV Production and Sales in June See Steady Growth; NEV Sales Account for 49.6% of Total New Vehicle Sales in H1 In June, NEV production and sales reached 1.598 million and 1.643 million units, up 26% and 23.6% YoY respectively. NEV sales accounted for 58.5% of total new vehicle sales. January-June, NEV production and sales totaled 7.438 million and 7.446 million units, up 6.7% and 7.3% YoY, and NEV sales accounted for 49.6% of total new vehicle sales. CAAM: June Auto Exports Exceed 1 Million Units for the First Time in History; NEV Exports Up 1.6x YoY In June, auto exports reached 1.037 million units, up 11.6% MoM, soaring 75.1% YoY, marking the first time monthly exports surpassed 1 million units. January-June, auto exports totaled 5.096 million units, up 65.3% YoY. In June, NEV exports were 523,000 units, up 17.2% MoM, and up 1.6x YoY; exports of conventional fuel vehicles were 514,000 units, up 6.4% MoM and 32.7% YoY. January-June, NEV exports reached 2.355 million units, up 1.2x YoY; conventional fuel vehicle exports totaled 2.741 million units, up 35.5% YoY. Regarding the auto market in H1, according to CAAM analysis, China's auto industry operated steadily overall, with cumulative declines in production and sales narrowing month by month. Market flows exhibited three key divergences: First, domestic demand was clearly under pressure, with sales dropping by a double-digit percentage; exports grew beyond expectations, providing a stable support. Second, the passenger vehicle market underperformed, edging down slightly; the commercial vehicle market continued its improving trend, with sales maintaining growth. Third, the shift from old to new economic drivers continued, with the traditional internal combustion engine vehicle market shrinking further while NEV maintained steady growth. Meanwhile, the China Passenger Car Association also released June passenger car market data. June retail sales of passenger cars in China reached 1.602 million units, down 23.2% YoY and up 6.1% MoM; year-to-date cumulative retail sales totaled 8.701 million units, down 20.2% YoY. In June 2026, China's domestic passenger car market showed a recovery trend characterized by "overall pressure, MoM strengthening, and extreme structural divergence." For passenger NEV, June retail sales reached 1.007 million units, down 9.4% YoY and up 6.0% MoM; January–June passenger NEV retail sales totaled 4.704 million units, down 14.0% YoY. June retail sales of conventional internal combustion engine passenger vehicles were 600,000 units, down 39% YoY and up 6.3% MoM; among these, ordinary hybrid models fell only 7% YoY while rising 24% MoM, a standout performance trend. In terms of NEV exports, June passenger NEV exports stood at 499,000 units, up 152.7% YoY and up 17.6% MoM , accounting for 56.9% of total passenger vehicle exports, an increase of 15.9 percentage points compared to the same period last year. Among these, pure EVs made up 58.7% of NEV exports (vs. 63.1% a year earlier), and A00+A0-class pure EVs—the core focus—accounted for 53.8% of pure EV exports (vs. 51.2% a year earlier). Riding on the growing scale advantage of China's NEVs and market expansion demand, an increasing number of Chinese-manufactured NEV-branded products are going global, with their recognition outside China steadily rising. Narrow plug-in hybrids represented 37.7% of NEV exports (vs. 33.4% a year earlier), while extended-range models comprised 3.6% of NEV exports (vs. 3.5% a year earlier). Despite some recent external disruptions, domestic narrow plug-in hybrid exports to developing countries are surging with bright prospects. The China Passenger Car Association noted that the core characteristics of the June auto market were "collapsing domestic sales of internal combustion engine vehicles, NEV firmly dominating, and exports surging strongly." The core pressure behind the decline in China's domestic auto market was internal combustion engine vehicles, with retail sales dropping 39% under the impact of high oil prices. In June, conventional internal combustion engine vehicles accounted for a 37.2% share, and their YoY decrease represented 78% of the total decline in passenger vehicles. Among these, ordinary hybrid models saw retail sales fall 7%, pure internal combustion engine vehicles fell 42%, and the internal combustion engine vehicle structure experienced further divergence. High oil prices, consumption transformation, and other factors accelerated the "oil-to-electric replacement" process. This month, the new energy retail penetration rate held at a historical high of 62.8%. The electrification transformation of joint-venture brands accelerated. In June, sales of new energy joint-venture car models grew 45% YoY, while internal combustion engine vehicle sales fell 39% YoY. Exports continued to be the core growth driver for the industry. In June, new energy exports accounted for 57% of total exports, a new high, while internal combustion engine vehicle export growth of 33% was also strong, resulting in superb dual growth of both oil and electric vehicles in China's going-global efforts. Currently, the domestic auto market is characterized by intense competition for existing stock, and divergence within the industry continues to intensify. The new energy market has bid farewell to all-round growth, showing a polarized trend of "explosive growth in high-end EVs and pressure on low-end economy car models," with markets in counties and townships and entry-level models declining too sharply. At the same time, the "new car effect" has become short-lived, significantly weakening its ability to boost the market. Pressure on the channel side remains prominent, the industry's pace of passive destocking has accelerated, and dealers are generally suffering losses with escalating operational risks. Overall, the MoM strengthening of the auto market in June was merely a structural recovery; electrification iteration and overseas exports have become the core pillars of the industry's long-term growth. Characteristics of the passenger car market in June 2026: 1. Total volume was under pressure with major structural divergence; "cold internal combustion engines, hot pure electric" became the biggest focus. The core reason for the domestic retail decline was the "collapse of internal combustion engines," which drove the new energy retail penetration rate to quickly exceed 60% and reach 62.8%, with the pace of electrification replacement surpassing expectations. 2. Mini EVs were under pressure, A-segment cars shrank, and entry-level consumption urgently needed support, with expectations for the introduction of economy EV standards. 3. Exports showed explosive growth, with new energy accounting for 57% of exports (a new high), and both new energy and self-owned brand dual-driven going global became the core growth engine. 4. Passive destocking characteristics were evident, channel inventory declined relatively rapidly, listed dealers were all in the red, and dealer survival pressure continued to intensify. 5. The breakthrough of self-owned brands in the high-end segment stood out, with passenger car retail penetration rates in consumer markets such as 200,000-300,000, 300,000-400,000, and above 400,000 all exceeding 50%. June Delivery Data for New Force Automakers Released: Leap Motor Charges Ahead – How Are Automakers’ Annual Targets Progressing? In early July, several domestic new force automakers successively announced their June delivery data, with many delivering impressive results: In June, Leap Motor continued its unstoppable momentum, delivering 93,376 units globally, up 95% YoY. Its H1 cumulative deliveries reached 356,487 units. According to previous media reports, Leap Motor's full-year 2026 sales target is 1 million units, and its current target completion rate is around 35.65%. This year, Leap Motor's new car deliveries have been climbing steadily, and its outstanding performance has kept it firmly at the forefront among new force automakers. In July, Leap Motor continued its momentum by launching a car purchase event, "Summer Deals: Save This Summer." During the event, customers who place orders can enjoy limited-time comprehensive benefits worth up to 61,279 yuan, bundled with four lifetime free warranty services, premium services, and more, offering a sincere benefits package to bring users a more relaxed car ownership experience. As of June 18, 2026, Leap Motor's cumulative global deliveries surpassed 1.5 million units, marking an important milestone in the brand's development. In June, NIO delivered 40,597 new vehicles, a single-month high for 2026, up 62.9% YoY. Among them, the NIO brand delivered 21,908 new vehicles, up 50.1% YoY; the Le Dao brand delivered 11,743 new vehicles, up 83.5% YoY; and the firefly brand delivered 6,946 new vehicles, up 76.7% YoY. As of now, NIO has cumulatively delivered 1,188,715 new vehicles. In H1 2026, NIO delivered a total of 191,123 new vehicles, reaching a record high, up 67.4% YoY. All three brands achieved record-high deliveries in H1. According to public information, NIO previously stated that it hopes to maintain an annual sales growth of 40%–50%. Based on this, its 2026 sales target is 456,000 to 489,000 vehicles. As of now, its full-year sales completion rate is around 39.08%–41.9%. Meanwhile, as of now, NIO has been profitable for two consecutive quarters, entering the third phase of high-quality development. Its multi-brand strategy is steadily advancing, and synergistic efforts are driving rapid sales growth. In June, XPeng Motors delivered 40,126 new vehicles, up 15.9% YoY; cumulative deliveries in Q2 reached 103,295 units. During the same period, the 10,000th XPeng GX rolled off the production line, global cumulative deliveries of the XPeng X9 surpassed 60,000 units, and the first SUV in the MONA series, the XPeng MONA L03, will make its China debut and start pre-sales on July 2, further enriching XPeng's product lineup and steadily advancing its global expansion. In H1 2026, XPeng Motors cumulatively delivered 165,977 vehicles, achieving a sales target completion rate of approximately 27.66%–30.18% against its 2026 goal of 550,000 to 600,000 units. Notably, global cumulative deliveries of the XPeng X9 have now exceeded 60,000 units, setting a new record for the fastest delivery pace among new energy MPVs. In June, Li Auto delivered 30,895 new vehicles. In H1 2026, Li Auto delivered a total of 193,472 vehicles. As of June 30, 2026, Li Auto's cumulative deliveries reached 1,733,687 units. In March this year, Li Auto's Chairman Li Xiang set a target of over 20% YoY sales growth for 2026, corresponding to 487,600 units for the full year. Currently, Li Auto's delivery completion rate for H1 stands at around 39.68%. In July, the new-generation Li Auto L6 will officially hit the market. Xiaomi Auto's June deliveries continued to exceed 30,000 units, with its H1 sales at approximately 180,000 units, representing a completion rate of roughly 32.73% against the 550,000-unit sales target it announced in January 2026. BYD, a globally renowned EV enterprise, reported NEV sales of 403,472 units in June, up 5.46% YoY. Its YTD production reached 1.8141 million units, down 15.11% YoY, while cumulative sales stood at 1.8085 million units, down 15.72% YoY. Passenger vehicle production was 396,400 units and sales were 397,300 units. Notably, in June, BYD's markets outside China maintained rapid growth, with passenger vehicle and pickup exports reaching 174,897 units, up 95% YoY. In H1, BYD's cumulative sales reached 1,808,511 units, and its cumulative NEV sales surpassed 16.9 million units. According to publicly available information, its previously set sales target ranged from 5 million to 5.5 million units, against which its current completion rate is roughly between 32.88% and 36.17%. Judging from the June report cards of BYD and these NEV startups, BYD and Leap Motor delivered outstanding performances. BYD's sales once again exceeded 400,000 units, while Leap Motor continued to refresh its delivery records, with global deliveries surpassing 90,000 units, securing its top spot in deliveries among NEV startups. NIO and XPeng Motors both surpassed the 40,000-unit delivery mark in June, each delivering commendable performances. However, the above-mentioned automakers still face a certain gap between their current sales achievements and their annual sales targets, with Li Auto posting the highest completion rate of 39.68%. Nevertheless, hopes remain for the September-October peak season in H2, and with a flurry of favorable auto policies emerging recently, the subsequent performance of automakers is still worth looking forward to. Policy side, on July 2, the Ministry of Finance, the State Taxation Administration, and the Ministry of Industry and Information Technology issued an announcement on adjusting the preferential vehicle and vessel tax policies for energy-saving vehicles and NEVs. It was mentioned that starting January 1, 2027, the policy of halving vehicle and vessel tax for energy-saving vehicles will be abolished, as will the policy of exempting pure electric commercial vehicles, plug-in hybrid electric vehicles (including range-extended), and fuel cell commercial vehicles from vehicle and vessel tax. For the above-mentioned types of vehicles newly acquired by taxpayers or already acquired before the implementation of this announcement, vehicle and vessel tax shall be levied in accordance with the Vehicle and Vessel Tax Law of the People's Republic of China, its implementing regulations, and other relevant provisions. Furthermore, on June 29, the China Automotive Power Battery Industry Innovation Alliance and the Zhongguancun Energy Storage Industry Technology Alliance jointly released the "Initiative for Standardizing Supplier Payment Practices for Power and ESS Battery Enterprises," which proposes standardized initiatives across multiple stages including order confirmation and changes, delivery and acceptance, payment and settlement, and contract terms. After the initiative was released, many power battery and ESS battery companies along China’s industry chain, including CATL, EVE, and Gotion High-tech, actively responded. An official from the Equipment Industry Division I of the Ministry of Industry and Information Technology commented that 11 key battery enterprises actively responded to the initiative and proposed relevant implementation measures, demonstrating their responsibility and commitment. The Ministry of Industry and Information Technology will give full play to the inter-departmental coordination mechanism, promptly resolve issues in implementation, and adopt multiple measures to promote the building of a collaborative and win-win development ecosystem for the entire industry chain of power and ESS batteries, fostering the healthy and sustainable development of the industry. Looking ahead to H2, CAAM expects that the program of large-scale equipment upgrades and consumer goods trade-ins will continue to be implemented in an orderly manner, consumption in the automotive aftermarket is expected to usher in new growth opportunities, the supply of new products from enterprises will continue to be enriched, market prices will remain relatively stable, and the overall economic performance of the industry will improve further. At the same time, it should be noted that the external situation is complex and changing, uncertainties continue to increase, the problem of insufficient domestic demand remains prominent, and the industry still faces significant pressure. It is necessary to stabilize policy expectations, strengthen guidance and supervision, closely monitor changes in the international situation, effectively respond to risks and challenges, and steadily explore international markets.

In mid-June 2026, the CAAM and the China Power Battery Industry Innovation Alliance successively released relevant data on the automobile and power battery markets for May 2026. The CAAM stated that in May, auto production and sales rose MoM but edged down YoY. Affected by multiple factors including policy adjustments, changes in market structure, and a macro environment under pressure, the Chinese market continued to show a double-digit decline YoY; meanwhile, exports were strong and sustained rapid growth. .......SMM has compiled the relevant data on the automobile and power battery markets for May 2026, for readers’ reference. Automobile CAAM: May Auto Production and Sales Reached 2.616 Million and 2.629 Million Units, Both Up MoM In May, auto production and sales reached 2.616 million and 2.629 million units, up 1.6% and 4.1% MoM respectively , and down 1.2% and 2.1% YoY respectively. From January to May, auto production and sales totaled 12.235 million and 12.207 million units, down 4.6% and 4.2% YoY respectively, with the declines narrowing further compared with the first four months. CAAM: May NEV Production and Sales Rose 22.4% and 14.4% YoY Respectively; NEV Sales Accounted for 47.5% of Total New Vehicle Sales In May, NEV production and sales reached 1.554 million and 1.496 million units, up 22.4% and 14.4% YoY respectively . NEV sales accounted for 56.9% of total new vehicle sales. From January to May, NEV production and sales reached 5.841 million and 5.802 million units, up 2.5% and 3.5% YoY respectively, and NEV sales accounted for 47.5% of total new vehicle sales. CAAM: NEV Exports More Than Doubled in May and January-May In May, NEV exports reached 446,000 units, up 3.8% MoM and 110% YoY. Of these, passenger NEV exports stood at 435,000 units, up 3.4% MoM and 110% YoY; commercial NEV exports reached 12,000 units, up 21% MoM and 48.1% YoY. From January to May, NEV exports totaled 1.833 million units, up 110% YoY . Of these, passenger NEV exports were 1.792 million units, up 120% YoY; commercial NEV exports were 41,000 units, up 0.6% YoY. The CAAM commented that in May, auto production and sales rose MoM but edged down YoY. Affected by multiple factors such as policy adjustments, market structure changes, and a macro environment under pressure, the Chinese market continued to see a double-digit decline YoY; exports developed robustly, sustaining a rapid growth trajectory. By car model, passenger vehicle sales edged down YoY, commercial vehicle sales maintained growth, and the NEV market stabilized and rebounded. Since the beginning of this year, the auto market has exhibited a pronounced characteristic of "domestic demand under pressure, foreign trade strong." The industry's operations have faced multiple challenges, including insufficient domestic demand, high costs, and external shocks. On the end-user side, policies and market expectations should be stabilized, industry governance deepened, restrictive measures introduced cautiously, and the consumption baseline solidified; on the foreign trade side, it is necessary to deepen international development, effectively address various risks and challenges, and strengthen the stabilizing support role of the international cycle. Meanwhile, the CPCA also released data on the passenger vehicle market for May. From May 1st to 31st, retail sales of passenger vehicles nationwide reached 1.51 million units, down 22.1% YoY, but up 9.2% MoM; cumulative retail sales since the start of the year reached 7.099 million units, down 19.5% YoY. In the NEV segment, May NEV retail sales fell 7% YoY, with domestic brands declining 10%, mainstream joint ventures growing 51%, and luxury brands growing 8%. Domestic retail sales of domestic economy EVs were significantly impacted by the sharp drop in subsidies. Due to strong subsidies for NEV commercial vehicles, the low and mid-end MPV segment experienced a relatively large decline. In terms of NEV exports, passenger NEV exports in May reached 424,000 units , up 112.6% YoY and up 4.4% MoM. These accounted for 54.1% of total passenger vehicle exports, an increase of 9.5 percentage points compared to the same period last year. Among them, BEVs accounted for 59.3% of NEV exports (compared to 66.1% same period last year), with the core focal A00+A0 class BEVs accounting for 53.8% of BEV exports (compared to 50.7% same period last year). Alongside the emerging scale advantages of Chinese NEVs and the demand for market expansion, an increasing number of Chinese-made NEV branded products are going overseas, with their recognition outside China continuously improving. Among NEV exports, narrow-body plug-in hybrid vehicles accounted for 36.2% (compared to 31.9% same period last year), and extended-range EVs accounted for 4.4% (compared to 2.0% same period last year). Although external interference from certain countries has occurred recently, the export of domestic narrow-body plug-in hybrids to developing countries has grown rapidly and shows bright prospects. The CPCA stated that the domestic passenger vehicle market in May 2026 presented an operational dynamic of overall volume under pressure, MoM strengthening, and extreme structural differentiation, without achieving a substantive recovery overall. The slight recovery in the auto market in May was mainly attributed to the evident effectiveness of the industry's "anti-involution" efforts, stabilizing automaker sales promotions and weakening the consumer expectation of price cuts. This, combined with the warmth-boosting effect of the Beijing Auto Show, released some pent-up car purchase demand, forming a phased terminal rebound. It said that the core features of the auto market in May were the collapse of internal combustion engine vehicle domestic sales, the strong dominance of new energy vehicles, and the counter-trend growth of exports. The main cause of the domestic auto market decline was the sharp contraction in fuel vehicle sales under the impact of high oil prices. In May, fuel vehicles accounted for a 37.1% share, but their YoY decline contributed 82% of the total decline in passenger vehicles, dragging down the overall market trend. Factors such as high oil prices and consumption transformation accelerated the "fuel-to-electric substitution" process. This month, the retail penetration rate of new energy vehicles continued to exceed 60%, reaching a historical high of 62.9%. The electrification transformation of joint venture brands accelerated. In May, sales of new energy JV car models grew 51% YoY, while fuel vehicle sales fell 41% YoY. Exports continued to be the industry's core growth engine. In May, the share of new energy in exports hit a new high of 54%, but fuel vehicle exports also showed strong performance with 46% growth, forming an exceptionally strong performance of China's all-round export growth. Characteristics of the passenger vehicle market in May 2026: 1. Overall volume was under pressure, with major structural divergence, and "fuel cold, new energy hot" became the biggest focus. The core reason for the decline in domestic retail was the "fuel collapse," which drove the new energy retail penetration rate to break through 60% to 62.9% (a new high), with the pace of electrification substitution exceeding expectations. 2. The electrification transformation of joint venture brands accelerated. In May, domestic retail sales of mainstream JV new energy vehicles grew 51% YoY, while the overall growth rate of domestic new energy vehicles slowed by 10%. JV brands such as Buick (with new energy accounting for 45%) began to show initial results in their shift to new energy. 3. Exports showed explosive growth, with new energy accounting for 54% (a new high) in exports, driven by both new energy and domestic brands, and going global becoming the core growth engine. 4. Clear characteristics of passive destocking and a relatively rapid decline in channel inventories. Listed dealers suffered overall losses, and dealer survival pressure continued to increase. 5. Independent brands made notable breakthroughs in the high-end segment, with retail sales of passenger vehicles in the 200,000-300,000 yuan, 300,000-400,000 yuan, and above 400,000 yuan price segments all exceeding 50%. 6. Micro EVs were under pressure, A-class cars shrank, entry-level consumption badly needed support, and the launch of economy EV standards was eagerly anticipated. Power Battery Update In April, power and ESS battery sales grew 47.4% YoY. January-May cumulative sales grew 48.5% YoY. In May, China's power and ESS battery sales reached 182.2 GWh, up 11.0% MoM and 47.4% YoY . Among them, power battery sales were 127.0 GWh, accounting for 69.7% of total sales, up 16.6% MoM and 45.2% YoY; ESS battery sales were 55.2 GWh, accounting for 30.3% of total sales, down 0.1% MoM but up 52.7% YoY. From January to May, China's cumulative power and ESS battery sales reached 783.4 GWh, up 48.5% YoY . Of this, cumulative power battery sales reached 527.9 GWh, accounting for 67.4% of total sales, up 34.9% YoY; cumulative ESS battery sales were 255.5 GWh, accounting for 32.6% of total sales, up 87.7% YoY. May China power battery installations up 25.9% YoY, LFP share at 81.2% In May, China's power battery installations reached 71.9 GWh, up 15.2% MoM and 25.9% YoY . Ternary battery installations were 13.4 GWh, accounting for 18.6% of total installations, up 15.9% MoM and 27.3% YoY; LFP battery installations were 58.4 GWh, accounting for 81.2% of total installations, up 14.9% MoM and 25.4% YoY. From January to May, cumulative power battery installations in China reached 259.1 GWh, up 7.3% YoY . Ternary battery cumulative installations were 50.8 GWh, accounting for 19.6% of total installations, up 13.3% YoY; LFP battery cumulative installations were 208.2 GWh, accounting for 80.4% of total installations, up 6.0% YoY. May: Leap Motor dominated among NEV startups; BYD's export growth impressive In early June, May domestic NEV sales/delivery figures were released. BYD continued to lead the global NEV market with sales exceeding 380,000 units. Among domestic NEV startups, Leap Motor's outstanding performance once again ignited market enthusiasm, setting a new monthly delivery record with over 80,000 units! Details are as follows: BYD: According to its announcement, BYD sold a total of 383,453 vehicles in May, including 376,990 passenger vehicles. By brand: Dynasty/Ocean series sold 330,215 units; Fang Cheng Bao sold 30,186 units; Denza sold 16,303 units; Yangwang sold 286 units. From January to May, BYD's cumulative sales reached 1,405,039 units. The company's cumulative NEV sales surpassed 16.5 million units. BYD's sales recovery was mainly supported by exports. Data shows that in May, BYD's overseas sales reached 161,000 units, up 80.4% YoY. NEV Startups: In May, Leap Motor delivered 81,569 vehicles across its entire lineup, up 81% YoY, setting a new historical high for monthly deliveries. The company's NEV sales grew steadily, maintaining its lead. Leap Motor also performed excellently in Italy's pure electric vehicle market, with monthly registrations reaching 4,765 units, up 1,278% YoY, and its pure electric market share reaching a record high of 34.5%. NIO delivered a total of 37,705 new vehicles in May, up 62.3% YoY and 28.4% MoM. Specifically, NIO brand deliveries reached 20,013 units, up 50.8% YoY; Ledao brand delivered 12,029 units, up 91.5% YoY and 124.8% MoM; and Firefly brand delivered 5,663 units, up 53.9% YoY and 13.7% MoM. In the first five months of this year, NIO delivered a total of 150,526 new vehicles, representing a 68.7% YoY increase. To date, NIO's cumulative deliveries have reached 1,148,118 units. Li Auto ranked third among NEV startups with monthly deliveries of 33,350 units this time. As of May 31, 2026, Li Auto's cumulative deliveries reached 1,702,792 units. Li Xiang, Chairman and CEO of Li Auto, said that since Q1 this year, Li Auto's deliveries have entered a growth trajectory, reclaiming the top spot among Chinese brands in the NEV market priced above 200,000 yuan. As of May 31, 2026, Li Auto had 498 retail centers across China, covering 160 cities; and 543 after-sales repair centers and authorized service centers, covering 222 cities. Li Auto has put into use 4,088 Li Auto supercharging stations nationwide, equipped with 22,563 charging piles. XPeng Motors delivered 32,158 new vehicles in May. On May 20, the new technology flagship XPeng GX was officially launched and began deliveries. Within 12 hours of launch, firm orders reached 24,863 units, with the Ultra flagship edition accounting for over 80% of orders. Showroom traffic and test drive volume hit a record high for the same period of any new car launch, making it one of the most popular products among users in the high-end luxury car market and a key step in XPeng Group's brand elevation. In the global market, XPeng maintained strong momentum. In April, overseas deliveries of the P7+ commenced, and monthly overseas sales exceeded 6,000 units for the first time. As of the end of Q1, XPeng had entered over 60 countries and regions worldwide, with 393 overseas sales outlets. Starting from Q2, international business revenue contribution is expected to exceed 20%. In H2 this year, XPeng plans to deliver four global car models, aiming to achieve sustained monthly overseas sales of over 10,000 units in Q4 and more than double full-year overseas sales. Xiaomi Auto's monthly deliveries continued to exceed 30,000 units in May, and its cumulative deliveries surpassed 139,000 units from January to May. On June 13, the latest news, Lei Jun, Chairman of Xiaomi Group, posted on Weibo that Xiaomi Auto attaches great importance to testing, with massive investment and scale. Currently, the testing team consists of over 800 members, of which over 45% are experts with more than 10 years of experience. This team has conducted tests in more than 300 cities and completed over 35 million kilometers of cumulative testing. Xiaomi Auto has 126 laboratories across four cities—Beijing, Nanjing, Shanghai, and Wuhan—covering a total area of over 65,600 m². It has also rented two full-vehicle comprehensive testing grounds in Yancheng, Jiangsu, and Guangde, Anhui. There is a dedicated team of around 500 personnel for extreme environment testing. This team is split into summer testing and winter testing units and is mainly responsible for four major extreme environment tests: Heihe (extreme cold), Turpan (extreme heat), the Kunlun Mountains (high altitude), and Hainan (high humidity). Overall, Cui Dongshu, Secretary General of the CPCA, noted that the key features of the auto market in May were “sluggish domestic sales of internal combustion engine vehicles, strong dominance of new energy vehicles, and YoY growth in exports amid headwinds.” Based on the current industry situation, the CPCA adjusted market expectations, revising the decline in full-year domestic passenger vehicle retail sales to 11%, from the 1% decline forecasted at the start of the year. Cui Dongshu stated that the auto market will gradually stabilize and improve in Q3, return to a growth trajectory in Q4, and the full-year decline in domestic passenger vehicle retail sales is expected to narrow to 11%, with the market still holding recovery potential. If the global situation stabilizes, commodity and oil prices return to reasonable ranges, transportation costs subsequently pull back, domestic consumer confidence in car purchases will gradually recover, and the auto retail market will also see a sustained recovery. Looking ahead to June, the CPCA projects that China’s domestic passenger vehicle market in June 2026 will present a weak recovery pattern of “MoM recovery, YoY pressure,” with the market slowly mending based on its own fundamentals. As a month-end period, June sees automakers pushing for their semi-annual sales targets, with OEMs and end-user stores increasing order replenishment efforts, a key positive factor supporting MoM recovery. There will be 21 working days this month, forming a YoY advantage of one extra working day compared to the base of 20 working days in June last year, providing a positive boost to overall production and sales. However, based on past experience, during months when the World Cup is held, the auto market’s sequential performance tends to be weaker. It fell 7% MoM in June 2018, and by 4% MoM in both June 2010 and June 2014. The negative impacts from the previous reduction in passenger vehicle trade-in subsidies and the cooling of the industry price war have been largely absorbed, marking an end to negative policy factors and providing a foundation for market recovery. End-user pace, the auto market showed a “front-loaded and then stabilizing” trend. Combined with the month-end semi-annual sales push effect, the overall monthly trajectory was relatively steady. Notably, the Dragon Boat Festival holiday fell on June 19 this year, significantly later than its May 31 date last year. The concentrated disruption from holiday foot traffic and diverted consumer spending affected the market this month, slightly suppressing mid-month car ordering enthusiasm and partially offsetting some of the benefits from the semi-annual month-end sales push and extra working days. This emerged as a key seasonal factor influencing the monthly trend. It is worth noting that geopolitical conflicts have driven international oil prices to fluctuate at highs, causing the cost of using fuel vehicles in China to keep climbing. This not only directly suppresses the willingness to purchase fuel vehicles but also adds to residents' expenditure pressure, further weakening overall car purchase consumption power and becoming a core factor constraining significant YoY growth in the auto market. At the same time, however, high oil prices have also been continuously accelerating the transition to vehicle electrification. Coupled with the momentum of pushing for half-year targets at the end of June, automakers have introduced compliant concession policies such as interest subsidies and car purchase gift packages for new energy models. Together with the concentrated delivery of multiple new NEV models, the industry's product portfolio has been continuously improved, and strength on the supply side has increased substantially. Currently, industry inventory is being gradually and orderly digested, the vicious price war has largely subsided, and terminals are clearing inventory through mild sales promotions, making market competition trend toward a benign state. Driven by multiple favorable factors, the passenger NEV penetration rate is expected to remain firmly above 60%, with the electrification process continuing to accelerate, becoming the core pillar supporting the resilience of the auto market. Against the backdrop of sluggish domestic demand, automobile exports have become the core pillar of industry growth, creating a pattern of "weak domestic demand, leading overseas demand." Chinese automakers continue to deepen their presence in overseas markets, focusing on diverse markets such as Latin America and Europe, effectively offsetting the impact of declining demand in the Middle East, with export sales maintaining high growth. Relying on the mature domestic new energy industry chain and high-quality products, automobile exports continue to move upscale and upgrade across all categories, effectively offsetting the growth pressure in the Chinese market and supporting the overall stable operation of the industry. Overall, the Passenger Vehicle Association estimates that the auto market's recovery momentum in June will be limited, structural potential remains large, and the overall weak recovery trend will persist.

In mid-May 2026, CAAM and the China Automotive Battery Innovation Alliance successively released data on the auto and power battery markets for April 2026. CAAM stated that in April, auto production and sales declined slightly compared to the same period last year, with the cumulative decline in production and sales narrowing further. Among them, domestic demand still needs improvement and stimulation; exports continued to grow rapidly, providing stable support for the overall market........SMM has compiled relevant data on the auto market and power battery market for April 2026 for readers' reference. Auto Sector CAAM: Auto Production and Sales Reached 2.575 Million and 2.526 Million Units Respectively in April In April, auto production and sales reached 2.575 million and 2.526 million units respectively, down 11.7% and 12.9% MoM, and down 1.7% and 2.5% YoY. From January to April, auto production and sales reached 9.614 million and 9.574 million units respectively, down 5.5% and 4.8% YoY. CAAM: NEV Production and Sales Both Grew in April, with NEV Sales Accounting for 53.2% of Total Auto Sales In April, NEV production and sales reached 1.32 million and 1.344 million units respectively, up 5.5% and 9.7% YoY . NEV sales accounted for 53.2% of total new auto sales. From January to April, NEV production and sales reached 4.285 million and 4.304 million units respectively, with production down 3.2% YoY and sales up 0.1% YoY . NEV sales accounted for 45% of total new auto sales. CAAM: NEV Exports More Than Doubled YoY In April, auto exports reached 901,000 units, up 3% MoM and up 74.4% YoY . From January to April, auto exports reached 3.127 million units, up 61.5% YoY . In April, NEV exports reached 430,000 units, up 16% MoM and up 1.1 times YoY ; traditional fuel vehicle exports reached 472,000 units, down 6.5% MoM and up 49% YoY . From January to April, NEV exports reached 1.384 million units, up 1.2 times YoY; traditional fuel vehicle exports reached 1.743 million units, up 34.6% YoY. CAAM commented that since the beginning of this year, China's economy has started strongly, with major indicators exceeding expectations. China's automotive industry has maintained steady progress in transformation and upgrading, foreign trade has demonstrated strong resilience, and overall competitiveness has continued to improve. The recently concluded Beijing auto show showcased cutting-edge achievements in electrification, intelligence, and cross-industry integration, vividly demonstrating that China has become the core market and innovation hub of the global automotive industry. Regarding the April auto market, CAAM stated that in April, auto production and sales declined slightly compared to the same period last year, with cumulative production and sales declines narrowing further. Specifically, domestic demand still needs improvement and stimulation; exports continued to grow rapidly, providing stable support for the overall market. In detail, the passenger vehicle market declined, the commercial vehicle market maintained growth, and NEVs operated steadily. On April 28, the CPC Central Committee Political Bureau held a meeting to analyze and study the current economic situation and economic work, and made a series of important arrangements. The meeting emphasized the need to fully utilize macro policies, deeply tap domestic demand potential, accelerate the construction of a modern industrial system, and systematically respond to external shocks and challenges. This will help improve the domestic auto market, consolidate foreign trade advantages, and promote stable operation and high-quality development of the industry. CPCA also released data on the April passenger vehicle market. April national passenger vehicle retail sales reached 1.384 million units, down 21.5% YoY and down 16.0% MoM; cumulative retail sales from January to April reached 5.604 million units, down 18.5% YoY. The April national passenger vehicle market exhibited complex characteristics of "total volume under pressure with structural divergence." NEV side, April passenger NEV retail sales reached 849,000 units, down 6.8% YoY and down 0.3% MoM; January-April passenger NEV retail sales reached 2.758 million units, down 17.2% YoY. April conventional fuel passenger vehicle retail sales were 530,000 units, down 37% YoY and down 33% MoM. NEV export side, as the scale advantages of China's NEVs become apparent and market expansion demand grows, Chinese-manufactured new energy brand products are increasingly going global, with overseas recognition continuing to rise. April passenger NEV exports reached 406,000 units, up 111.8% YoY and up 18.3% MoM, accounting for 52.7% of passenger vehicle exports, up 8 percentage points YoY; among which, BEVs accounted for 57.2% of new energy exports (65.5% in the same period last year), and A00+A0 class BEVs as the core focus accounted for 51.2% of BEV exports (46% in the same period last year). CPCA stated that this year's passenger vehicle market, affected by multiple factors including NEV purchase tax policy adjustments, weak consumer confidence, and high oil prices, has exhibited an operating trend of "China slowing down, exports growing rapidly; fuel vehicles contracting, new energy dominating."High oil prices dealt a heavy blow to domestic retail of internal combustion engine vehicles, directly affecting the domestic retail recovery process. From January to February this year, internal combustion engine vehicle retail declined by 740,000 units YoY, accounting for 40% of the passenger vehicle retail decline; in March, internal combustion engine vehicle sales declined by 345,000 units YoY, accounting for 52% of the passenger vehicle retail decline; in April, internal combustion engine vehicle sales declined by 365,000 units YoY, with the decline share further expanding to 84%. Under the atmosphere of cost anxiety, consumer demand is accelerating its shift from internal combustion engine vehicles to new energy vehicles, and the market's "fuel-electric divergence" pattern is becoming increasingly prominent. However, on the export side, the opposite was true: from January to February, internal combustion engine vehicle exports grew by 100,000 units YoY, accounting for 25% of the passenger vehicle export growth; in March, internal combustion engine vehicle exports grew by 100,000 units, accounting for 32% of the passenger vehicle export growth; in April, internal combustion engine vehicle exports grew by 130,000 units, climbing to 38%. Due to the notable effects of recent anti-involution measures in the auto market, the scale of price cuts was small, promotional levels remained stable, and many consumers' expectations of waiting for price reductions gradually faded, with some users in stalemate beginning to make car purchases. The Beijing Auto Show in April has become the world's largest auto show, with enormous industry chain scale and influence, providing a strong boost to auto sales recovery in late April. Characteristics of the passenger vehicle market in April 2026: First, overall volume was under pressure with significant structural divergence, with "cold fuel, hot new energy" becoming the biggest focal point. The core reason for the domestic retail decline was the "collapse of fuel vehicles," with new energy retail penetration rate reaching 61.4% (breaking through 60% for the first time in history), and the pace of electrification substitution exceeding expectations. Second, domestic brand share continued to strengthen, with traditional domestic brands successfully transforming, while joint venture brands lagged in electrification progress, solidifying the "domestic brand dominance" pattern. Third, exports showed explosive growth, with new energy accounting for 52.7% (breaking through 50% for the first time in history), driven by the "new energy + domestic brands" dual engine, making "going global" the core growth engine. Fourth, passive destocking characteristics were evident, with channel inventory declining rapidly, listed dealers suffering comprehensive losses, and dealer survival pressure continuing to intensify. Fifth, dramatic structural changes within new energy occurred, with B-class EVs surging and economy EVs under pressure, showing "high-end rising, low-end struggling." Sixth, new model contribution declined: April producer sales of new models launched in 2026 reached 108,400 units, accounting for 5.1% of total volume, while new models launched in 2025 sold 130,000 units in April 2025, with some classic car models maintaining stable leading sales positions. Power battery segment Power and ESS battery sales up 39.0% YoY in April, up 48.9% YoY cumulatively from January to April In April, China's power and ESS battery sales reached 164.2 Gwh, down 6.2% MoM, up 39.0% YoY . Among them, power battery sales were 108.9 GWh, accounting for 66.4% of total sales, down 5.0% MoM and up 25.8% YoY; ESS battery sales were 55.2 GWh, accounting for 33.6% of total sales, down 8.5% MoM and up 75.5% YoY. From January to April, China's cumulative power and ESS battery sales reached 601.2 GWh, up 48.9% YoY cumulatively . Among them, cumulative power battery sales were 400.9 GWh, accounting for 66.7% of total sales, up 31.9% YoY cumulatively; cumulative ESS battery sales were 200.4 GWh, accounting for 33.3% of total sales, up 100.4% YoY cumulatively. China's Power Battery Installations Up 15.2% YoY in April, Cumulative Installations Up 1.6% YoY from January to April In April, China's power battery installations were 62.4 GWh, up 10.4% MoM and up 15.2% YoY . Among them, ternary battery installations were 11.5 GWh, accounting for 18.5% of total installations, up 7.6% MoM and up 24.2% YoY; LFP battery installations were 50.8 GWh, accounting for 81.5% of total installations, up 11.0% MoM and up 13.4% YoY. From January to April, China's cumulative power battery installations were 187.2 GWh, up 1.6% YoY cumulatively . Among them, cumulative ternary battery installations were 37.4 GWh, accounting for 20.0% of total installations, up 8.9% YoY cumulatively; cumulative LFP battery installations were 149.8 GWh, accounting for 80.0% of total installations, down 0.1% YoY cumulatively. Leap Motor Continued to "Lead" Among New Forces in April, BYD's Overseas Sales Hit a Record High April sales/delivery data for new automaking forces were released. Leap Motor continued to "lead," delivering 71,387 units in April, up 73.9% YoY. Delivery momentum continued to surge, with back-end production running at full capacity simultaneously. Currently, Leap Motor's A10 factory capacity has exceeded 1,000 units/day. Starting from April, Leap Motor's intelligent features also entered a phase of large-scale popularization. Currently, urban navigation-assisted driving has been made available for experience across multiple Leap Motor car models, and in the future, nationwide urban NAP and parking-space-to-parking-space navigation assistance will be rolled out in batches. Leveraging its full-domain self-developed capabilities, Leap Motor has achieved full coverage of assisted driving from the 100,000-yuan-level A10 to the flagship D19, making smarter and safer advanced intelligent assisted driving no longer a privilege of the few, but an accessible part of everyday travel. Li Auto delivered a total of 34,085 new vehicles in April. As of April 30, 2026, Li Auto's cumulative historical deliveries reached 1,669,442 units. As of April 30, 2026, Li Auto had 511 retail centers nationwide, covering 160 cities, and 550 after-sales repair centers and authorized service centers, covering 223 cities. Li Auto had put into use 4,077 Li Auto supercharging stations nationwide, with 22,509 charging piles. XPeng Motors delivered 31,011 new vehicles in April. As of April, cumulative deliveries of the XPeng MONA M03 exceeded 250,000 units, ranking first among pure electric sedans in the 100,000-200,000 yuan segment for 19 consecutive months. As of April 30, XPeng's charging network covered over 430 cities, with over 3,550 cumulative self-operated charging stations, including over 3,000 self-operated ultra-fast charging stations. To ensure smooth travel during the Labour Day holiday, XPeng completed dedicated inspections and maintenance of charging stations along highways and at popular scenic areas. Xiaomi Auto delivered over 30,000 units in April. On May 6, Xiaomi Auto announced that the new-generation SU7 had received over 80,000 locked orders in just 48 days since its launch. The new-generation SU7 Standard Edition was priced at 219,900 yuan, the Pro Edition at 249,900 yuan, and the Max Edition at 303,900 yuan. NIO delivered 29,356 new vehicles in April, up 22.8% YoY. Among them, the NIO brand delivered 19,024 units; the ONVO brand delivered 5,352 units, up 21.6% YoY; and the firefly brand delivered 4,980 units. In the first four months of this year, NIO delivered a total of 112,821 vehicles, up 71.0% YoY. To date, NIO has cumulatively delivered 1,110,413 vehicles. In April 2026, the all-new NIO ES8 achieved 13,020 new vehicle deliveries. To date, the all-new ES8 has accumulated over 100,000 users and set the record for the fastest delivery of 100,000 units among high-end car models priced above 400,000 yuan in China. In addition, the all-new ES8 has been the sales champion among large SUVs and car models priced above 400,000 yuan for four consecutive months. BYD, China's leading EV maker, recorded auto sales of 321,123 units in April. Exports exceeded 130,000 units, hitting a new all-time high. Cumulative NEV sales surpassed 16.1 million units. On May 9, BYD and China Auto Rental (CAR Inc.) officially signed a Flash Charging China strategic cooperation agreement and a 100,000-unit vehicle procurement framework agreement in Shenzhen. Under the agreement, the two parties will conduct in-depth cooperation around the "Flash Charging China Strategy," deploying BYD flash charging pile facilities at eligible CAR Inc. stores nationwide to build a widely covered, efficient, and convenient charging service network, jointly enhancing user travel experiences. Meanwhile, the two parties signed a 100,000-unit vehicle procurement framework agreement, further consolidating BYD's core position in CAR Inc.'s NEV fleet and supporting its continued expansion of green transportation capacity. The CPCA stated that the current auto market is at a critical stage of smooth transition from "policy-driven" to "market-guided" and "product-driven." Although the market is under pressure in the short term, with multiple heavyweight new car models entering the market around the auto show period, supply-side efforts are expected to gradually drive demand-side recovery, and the overall auto market is expected to see a more robust rebound in Q2. In addition, CPCA Secretary General Cui Dongshu noted that the NEV penetration rate exceeded 60% in April, a "leapfrog" development compared to approximately 52% in March, with a key reason being the sharp decline in internal combustion engine vehicle demand, which in turn pushed up the NEV penetration rate. Recently, some automakers announced raises in optional intelligent driving features pricing, drawing market attention. In response, Cui Dongshu stated that China's auto market currently exhibits significant differentiation in automaker gross margins: high-end automakers maintain relatively high gross margin levels, with many models still sustaining gross margins above 20% supported by pricing, facing relatively small profitability pressure and having no substantive need to raise prices; low and mid-end automakers, however, face notable profitability pressure. Yet as industry competition continues to intensify and the overall market is in a state of volume contraction, broad-based price increases by automakers lack feasibility. Looking ahead to May, the CPCA stated that May this year has 19 working days, consistent with the 19 working days in May 2025. Auto market production and sales are expected to continue the prior gradual rebound trend. From the end-user pace and consumption perspective, the MoM recovery momentum of the May auto market is generally improving. The 2026 truck renewal subsidy standards remain unchanged, while passenger vehicle trade-in subsidies were reduced, and the impact of passenger vehicle sales losses is expected to diminish over time. Sales losses previously caused by the cooling of industry price wars and sales promotions falling short of expectations have been gradually absorbed. The Labour Day holiday combined with local auto shows activated car purchase demand, driving pre-holiday order locking and post-holiday concentrated deliveries, with monthly trends showing strength early and stability later. The surge in fuel prices is an exceptionally significant factor affecting consumption, bringing uncertainty to market sales. Currently, residents' income expectations remain cautious, wait-and-see sentiment toward car purchases persists, and coupled with tightening auto finance and higher credit thresholds, rigid demand is supported only by local subsidies and automaker concessions. China's consumption recovery is mild, with notable structural differentiation. Under the intertwined influence of multiple factors including international oil price fluctuations and intensive new product launches, these will dominate the May auto market performance. The Labour Day long holiday is a dividend driving MoM sales recovery, but consumption shortcomings are difficult to repair quickly, constraining YoY growth. High oil prices have reshaped car purchase preferences and accelerated the electrification transition, while the comprehensive new energy industry chain continues to empower export growth. The overall picture presents a weak recovery pattern of "MoM recovery, YoY pressure, domestic demand differentiation, exports leading, and continuously rising NEV penetration rate."

Recycling Industry Events This Week (December. 29-31)

Recently, the People's Government website of Nanpiao District, Huludao City, Liaoning Province, released the first public notice regarding the "Automobile Dismantling and New Energy Vehicle Battery Dismantling and Comprehensive Utilization Project" planned by a local ecological environmental protection company. According to the public notice, the company intends to construct a production line capable of dismantling 50,000 end-of-life fuel vehicles annually, a production line for dismantling 50,000 end-of-life new energy vehicles annually, a production line for dismantling and comprehensive utilization of new energy vehicle batteries, and a production line for producing 100,000 tons of recycled aluminum annually, all within the Nanpiao Circular Industrial Park.

Shanghai has announced its 2026 allocation plan (third batch) for energy conservation and emission reduction special funds and ultra-long special treasury bonds. The funds will support national vehicle scrappage and replacement programs, covering both fuel vehicles and new energy vehicles, with a total of 43.232 million yuan allocated from the municipal energy conservation and emission reduction special funds.

Shenzhen announced a vehicle replacement subsidy on February 28, 2026. Individual consumers who trade in their old passenger vehicle for a new energy vehicle (NEV) or a fuel vehicle (2.0L and below) are eligible. The subsidy is 8% of the vehicle price (max RMB 15,000) for NEVs and 6% (max RMB 13,000) for fuel vehicles.

I. Policy Review: Hydrogen Energy Policy Developments (I) Domestic Policies Department of Economy and Information Technology of Sichuan Province: Issued the "Key Areas and Directions for New Industrial Tracks in Sichuan Province." The document specifies the following regarding green hydrogen: 1. Hydrogen equipment: Chengdu, Deyang, Panzhihua, Zigong, Neijiang. 2. Key hydrogen materials and core parts: Chengdu, Deyang. Hydrogen fuel cell systems: Chengdu, Deyang. 3. Hydrogen fuel vehicles and rail transit products: Chengdu, Deyang. 4. Distributed hydrogen power generation equipment: Chengdu, Deyang. Hydrogen-oxygen combined cooling, heating, and power facilities: Chengdu, Deyang. Department of Industry and Information Technology of Hunan Province : Issued the "Hunan Province Zero-Carbon Factory Construction Plan (Interim)." The document outlines the main objectives: By 2027, strive to cultivate a number of provincial-level zero-carbon parks. The decrease in carbon dioxide emissions per unit of industrial added value in parks should be significantly higher than the overall societal decrease, forming a set of replicable and scalable experiences in construction paths, development models, low-carbon transformation, and operational management. By 2030, complete and accept a batch of provincial-level zero-carbon parks. Carbon dioxide emissions per unit of industrial added value in parks will further decrease, the energy structure will become increasingly cleaner, energy conservation and consumption reduction will continue to advance, industrial carbon reduction and decarbonization will show significant results, the zero-carbon park construction model will be basically perfected, and the green competitiveness of advantageous industries will reach the domestic advanced level. Department of Industry and Information Technology of Hunan Province: Issued the "Hunan Province Zero-Carbon Park Construction Plan (Interim)." The document states: By 2027, cultivate and construct a number of zero-carbon factories in sectors such as electronic products, engineering machinery, EVs, lithium batteries, PV, rail transit, aerospace, and textiles that achieve leading provincial levels in energy consumption, resource utilization, process technology, and operational management, forming replicable and scalable construction experience. By 2030, gradually extend zero-carbon factory construction to industries including steel, non-ferrous metals, petrochemicals and chemicals, and building materials, complete and accept a batch of zero-carbon factories with significant emission reduction results and prominent driving effects, and effectively promote low-carbon, zero-carbon, and negative-carbon process technologies and operational models in key industries, providing core support for the province's industrial green and low-carbon transformation. By 2035, zero-carbon factory construction will fully accelerate, corporate carbon emissions per unit of energy consumption and product carbon footprints will continue to decline, synergistic carbon reduction across the industry chain will make positive progress, and the efficacy of zero-carbon factories in leading the green, low-carbon, and high-quality development of the province's manufacturing industry will be fully demonstrated. (II) Overseas Developments Max Power: It announced the completion and testing of a natural hydrogen well in Saskatchewan, Canada, defining it as "Canada's first natural hydrogen drilling discovery." Mejillones Ammonia Energy: Obtained environmental approval for its proposed 620,000 mt green hydrogen and ammonia project in Antofagasta, Chile. AM Green: Broke ground on a 1.5 million mtpa green hydrogen-based ammonia plant in Kakinada, Andhra Pradesh, India, targeting initial production by mid-2027. II. Enterprise Dynamics: Project Signings and Technical Cooperation (I) Project Intelligence Hubei Guanggu East Holding Group: The Guanggu East Hydrogen Energy Aoti Avenue Station was completed and put into operation in Daye, marking the second hydrogen refueling station in the area. This station is an integrated energy facility covering an area of 18 mu, featuring refueling, hydrogen refueling, hydrogen storage, charging, and car washing services, with a daily hydrogen refueling capacity of 2 mt. With government subsidies, the selling price of hydrogen is set at 25 yuan per kilogram. Shanghai Lingang New Area Public Transport Co., Ltd.: Issued a procurement for vehicle-use hydrogen for 2026, with a budget of 17.63 million yuan, primarily to supply hydrogen refueling services for hydrogen energy vehicles. The hydrogen quality must meet 99.97% high-purity standards and comply with national and industry standards. The intended supplier is Shanghai Zhongyou Shenneng Hydrogen Energy Technology Co., Ltd. Qingdao Xinbo Holding Group Co., Ltd.: Announced the winning bid result for the hydrogen pipeline project in the hydrogen energy industrial park. The bid winner is China Petroleum Pipeline Engineering Co., Ltd., with a winning bid price of 2.0389 million yuan. Beijing Yihuatong Technology Co., Ltd.: Formally signed a strategic cooperation agreement with PowerChina Kunming Engineering Co., Ltd. Both parties will integrate their strengths in hydrogen-electric energy storage technology and new energy engineering to collaborate comprehensively in areas such as wind and solar power, new-type energy storage, green hydrogen production from electricity, and zero-carbon intelligent computing centers. Sinopec Chemical Sales Co., Ltd. Central China Branch : Collaborated with Zhonghan Petrochemical, chemical logistics, and downstream customers to increase the application of hydrogen energy vehicles. In 2025, hydrogen-powered heavy-duty trucks transported 37,000 mt of synthetic resin products, up over 200% YoY. Shanghai Hydrogen Energy Group Co., Ltd. : The opening ceremony for the "Hydrogen Corridor" in Southwest China and the launch ceremony for 300 hydrogen-powered heavy-duty trucks under the Hydrogen Energy Group's Fengyuan Integrated Wind-Solar Hydrogen Production and Refueling Project were held at the Yunnan FuYuan Coal Intelligent Logistics Park. Beijing Haidelizi New Technology Co., Ltd.: Haidelizi successfully won the bid for CNOOC Gas and Power Group Co., Ltd.'s "Fuel Cell Combined Heat and Power System Integration, Testing, and Commissioning Project." (II) Enterprise Dynamics SPIC (Tianjin) Energy Investment Co., Ltd.: was officially established recently. The company has a registered capital of 200 million yuan and is located in Room 318, Huaying Building, Central Avenue, Tianjin Pilot Free Trade Zone (Airport Economic Zone), hosted by Nabai Chuan (Tianjin) Business Secretary Co., Ltd., with hosting number 812, and its legal representative is Peng Wansheng. The company's business scope is extensive, covering multiple areas. General business items include: construction and operation of centralized fast charging stations; cooling supply services; sales of solar thermal utilization equipment; information system integration services; contract energy management; engineering management services; solar power generation technical services; leasing of computers and communication equipment; consulting and planning services; professional design services; data processing services; industrial internet data services; operation of EV charging infrastructure; ESS technical services; sales of hydrogen refueling and storage facilities for stations; wind power generation technical services; leasing of PV power generation equipment. At the same time, the company is also involved in some licensed business items, specifically including: electricity supply business; power generation, transmission, and distribution business; installation, maintenance, and testing of transmission, supply, and receiving power facilities; electrical installation services, etc. Shaanxi Hydrogen Energy Industry Development Co., Ltd.: held a discussion and exchange with the China Special Equipment Inspection and Research Institute, where both sides conducted in-depth and practical exchanges on deepening strategic synergy in the hydrogen energy field and injecting national-level technology and resource momentum into the high-quality development of the regional hydrogen energy industry. Shanxi Meijin Energy Co., Ltd. : released its 2025 performance forecast. The report shows that the estimated net profit attributable to the parent company's shareholders is expected to be a loss of 850 million to 1.25 billion yuan, compared to a loss of 1.143 billion yuan in the same period last year; the estimated non-recurring net profit is expected to be a loss of 885 million to 1.285 billion yuan, compared to a loss of 1.093 billion yuan in the same period last year; and the basic earnings per share are expected to be a loss of 0.19 to 0.28 yuan per share. Shanghai Anting Hydrogen Energy Technology Group Co., Ltd.: received a national-level industry recognition—its official operating entity, Shanghai Anting Hydrogen Energy Technology Group Co., Ltd., was recently officially approved as a member unit of the China Industrial Development Promotion Association. Shanxi Pengfei Group Co., Ltd.: Zheng Peng, Chairman of the Board of Directors, led a team on an invited field trip to Huawei's headquarters in Shenzhen for exchange and discussions, accompanied by Peng Zhongyang, Deputy Head of Huawei's Strategic Reserve Corps, and Ding Xu, Minister of Quality Operations and Process IT Department of the Intelligent Automotive Solutions BU, among others. Shanghai Kunhua New Energy Technology Co., Ltd.: made an appearance at the 18th World Future Energy Summit held at the Abu Dhabi National Exhibition Centre in the UAE. III. Technological Advancements: Efficiency and Cost Breakthroughs (1) Progress in Hydrogen Production, Storage, and Transportation Beijing Hydrogen Energy Innovation Center: At the "Hydrogen Heart, Peer Cooperation, Creating a Winning Future" achievements release conference of the Beijing Hydrogen Energy Innovation Center, the center unveiled its R&D achievements in the forward-designed integrated hydrogen-electric chassis for heavy-duty trucks. The project's version 2.0 heavy-duty truck achieved a hydrogen consumption of 7.1 kg per 100 kilometers under plain operating conditions, and the vehicle supports flash charging, with refueling completed in 10-15 minutes. CIMC ENRIC: The product of the 38.7 m³ Type II tube bundle container project, developed by its Shijiazhuang ENRIC Gas Machinery Co., Ltd., has successfully rolled off the production line. Chinese Academy of Sciences: A new technology of Sprayed Ultra-High Performance Concrete (SUHPC), jointly developed by CCCC Second Harbor Engineering Co., Ltd. and the Wuhan Institute of Rock and Soil Mechanics of the Chinese Academy of Sciences, has been successfully applied in the initial tunnel support engineering of China's first rock cavern hydrogen energy storage system project—the Daye Rock Cavern Hydrogen Energy Storage System in Hubei Province. Foshan Xianhu Laboratory: The industry's first "Zero-Carbon Ammonia-Fueled Aluminum Billet Heating Furnace" for aluminum extrusion production was launched at Foshan Xianhu Laboratory. This equipment enables zero-carbon operation in the aluminum processing heating stage, marking a significant step forward in the green transformation of China's aluminum processing industry. (2) Fuel Cell Technology/Product Developments South China University of Technology: The team led by Chen Yu discovered a Ce₀.₆Ni₀.₂Cu₀.₂O₂ nanocatalyst with a heterogeneous structure, which contributes to high-performance direct methanol protonic ceramic fuel cells. Wuhan University of Technology: Professor Tang Haolin's team collaborated with Professor Jin Huanyu from the Shenzhen Institute of Advanced Technology, Chinese Academy of Sciences. They proposed a strategy of "coupling electron-withdrawing groups to enhance proton delocalization." Through molecular structure design, they reduced the proton delocalization energy barrier in perfluorosulfonimide-biphenyl* acid (PFSI-BPA) membranes, achieving a synergistic improvement in efficient proton conduction and thermal stability. This was confirmed through a combination of in-situ measurements and theoretical calculations. Xi'an University of Architecture and Technology: By carefully designing the structure within the titanium dioxide electrolyte and leveraging the synergy between polystyrene sphere templates and lithium-based electrodes, the team successfully induced an "online in-situ structural transformation" inside the battery, ultimately forming a stable lithium-titanium-oxygen-carbon heterogeneous structure.

On December 31, it was announced that Shenzhen will fully launch its old-for-new replacement program on January 1, 2026. The program includes subsidies for vehicle scrapping and replacement, as well as the replacement of six categories of home appliances and four categories of digital products. For vehicle scrapping and replacement, the maximum subsidy for new energy vehicles is ¥20,000, while for fuel vehicles it is ¥15,000. For the exchange purchase of new energy passenger vehicles, the maximum subsidy is ¥15,000, and for fuel passenger vehicles, it is ¥13,000. For the six categories of home appliances, a subsidy of 15% of the product's sales price will be provided. Each consumer is eligible for one subsidized item per category, with a maximum subsidy of ¥1,500 per item. For the four categories of digital and smart products, a subsidy of 15% of the product's sales price will be granted. Each consumer can claim one subsidized item per category, with a cap of ¥500 per item.