Global NEV Sales Rise 10.4% YoY in 2Q26; Overseas Expansion Becomes Key to Chinese Automakers’ Competitiveness, Says TrendForce

TrendForce’s latest EV industry research reveals that global sales of NEVs—BEVs, PHEVs, and fuel cell vehicles—reached 5.37 million units in the second quarter of 2026, up 10.4% YoY. Including HEVs, these four categories accounted for a record-high 33.2% of global vehicle sales in the quarter.

Shifting regional demand significantly reshaped brand market-share rankings in 2Q26. China remains the world’s largest NEV market, though persistently weak domestic demand reduced its share of global sales from 66% in the same period of 2025 to 56%. 

TrendForce notes that fewer brands can sustain growth by relying solely on China’s domestic market, making overseas sales and shipment capabilities a key measure of Chinese automakers’ competitiveness. BYD, for example, recorded an export-to-production ratio of 44% in 1H26, highlighting the growing importance of overseas markets to the group’s overall operations. 

Leapmotor rises to third in quarterly BEV sales for the first time; Volkswagen falls out of top 10

BYD (brand) regained the lead in global BEV sales in 2Q26. Although sales were still below last year, the YoY decline narrowed significantly from the previous quarter. Tesla dropped to second place despite achieving 25% YoY growth in global sales. 

Leapmotor reached third place globally for the first time, mainly due to its sales being concentrated in China. However, its major shareholder, Stellantis, provides it with production, sales, and distribution expertise in Europe, giving it an advantage in international expansion. 

Toyota, ranked seventh, saw an impressive 143% YoY sales increase during the quarter. By utilizing its extensive global distribution network, Toyota has rapidly introduced new models across many markets, improving its reputation for BEV sales. Meanwhile, Volkswagen fell out of the top 10 in global BEV sales for the first time, highlighting concerns about its electrification strategy.

Europe becomes a key PHEV market for Chinese automakers

BYD (brand) maintained its lead in the PHEV market in 2Q26 and widened its market-share gap with other automakers. Competition from second place onward remained intense, with market-share differences among most brands being less than 1 percentage point.

Europe has emerged as a key strategic market for Chinese automakers, as domestic PHEV sales in China are declining and the EU imposes no additional tariffs on China-made PHEVs. In 2Q26, Chinese brands, excluding Volvo cars, captured nearly 30% of the Western European PHEV market, indicating a meaningful shift in local consumer acceptance and an erosion of the competitive advantages traditionally held by European automakers.