In July, over half of all vehicles sold in China were new energy vehicles (NEVs), including electric vehicles (EVs) and plug-in hybrids, marking a significant milestone in the world's largest auto market. NEV sales surged by 37% year-over-year, driven by substantial government incentives, increased investment in EV supply chains, and relaxed purchase restrictions in cities like Beijing. Despite this growth, overall car sales in China fell 3.1%, reflecting broader economic challenges. Comparatively, in the U.S., EV and hybrid sales accounted for just 18% of total vehicle sales in the first quarter of 2024. Meanwhile, California saw a slight increase in zero-emission vehicle sales, though critics argue this is not indicative of broader market success. The rapid adoption of NEVs in China is expected to influence global automaker strategies and technologies.