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NEV Weekly Orders Declined Sequentially, Penetration Rate Rose to 67%

Institution
Goldman Sachs
Date
20260616
Authors
Tina Hou, Jenny Du
Company
cell, China State New Energy, BYD, Geely Automobile, Tesla, NIO, Harmony Intelligence (HIMA), Leapmotor, Li Auto, Xiaomi Auto, XPeng
Ticker
LFP, NCM, 600617, 002594, TSLA, 09866, 02015, 09868
Industry
AR, Internet Retail, New Energy Vehicles
Rating
NeutralMedium confidenceShort-termThe report is a high-frequency data weekly report that objectively states industry trends such as sequential order declines and rising penetration rates, without providing explicit long/short ratings or investment advice.
AuthorsTina Hou, Jenny Du
CoverageChina
Research firm divisions/subsidiariesGoldman Sachs (China) Securities Company Limited(Subsidiary/Legal Entity)

AI summary card

NEV Weekly Orders Declined Sequentially, Penetration Rate Rose to 67%

New Energy Vehicle orders in Week 24 of 2026 fell both year-over-year and month-over-month, but retail/wholesale penetration rates rose to 66.7%/67.2%; upstream lithium carbonate prices rebounded, terminal discounts narrowed.

New Energy VehiclesWeekly OrdersPenetration RateBYDGeely AutomobileLithium CarbonateTerminal Discounts
  • Week 24 key NEV OEM orders down 14% YoY, 13% MoM
  • Early June NEV retail/wholesale penetration rates reached 66.7%/67.2%
  • Geely/BYD/Tesla week order performance relatively stable sequentially
  • NIO/Harmony Intelligence/Tesla YTD orders grew year-over-year
  • NEV dealer discounts narrowed, ICE vehicle discounts expanded
  • Cathode Lithium Carbonate price up 3.6% week-on-week
  • LFP and Ternary Prism Cell prices flat week-on-week

Report interpretation

Overview

This weekly report tracks the 2026 Week 24 (June 8-14) China New Energy Vehicle market's orders, sales, terminal prices, and upstream raw material dynamics. The core conclusion is that affected by the fading pulse effect of new vehicle launches at the end of May, the week's NEV orders saw double-digit declines both year-over-year and month-over-month, but structural highlights remain; NEV penetration rates climbed further to around 67% in early June. Meanwhile, the industry chain showed characteristics of 'upstream price increases, terminal discount narrowing', indicating supply-demand games continue.

Core views

Orders showed seasonal decline and differentiation simultaneously. In Week 24, total orders from key NEV OEMs decreased 14% year-over-year and 13% month-over-month, mainly due to weakening short-term stimulation effects from concentrated new vehicle listings at the end of May. However, amid overall correction, top-tier enterprises demonstrated strong resilience: Geely, BYD, and Tesla had weekly order changes of +8%, -4%, and -8% respectively, with significantly smaller declines than the industry average. From year-to-date cumulative dimension, NIO, Harmony Intelligence (HIMA), and Tesla achieved 93%, 31%, and 3% year-over-year growth respectively, showing defensive growth capability for some brands under new product cycles. Penetration rates continued breaking new highs. According to CPCA data, during June 1st-7th, passenger car retail sales were 228,000 units (YoY -23%, MoM -11%), wholesale sales 204,000 units (YoY -25%, MoM +10%). Among them, NEV retail was 152,000 units (YoY -14%, MoM +8%), wholesale 137,000 units (YoY -6%, MoM +17%). Corresponding NEV retail penetration rate reached 66.7%, wholesale penetration rate 67.2%, further improved compared to May's 63% and 61.1%, marking accelerated substitution process of NEVs over ICE vehicles. Price system presented 'Oil-Electric Differentiation' and cost transmission signs. As of June 13th, NEV dealer average discount rate was 7.54%, narrower than last week (7.79%) and same period last year (8.18%); among them BYD discount rate was only 4.27%, highlighting pricing power. In contrast, ICE dealer discount rate slightly increased to 19.56%, reflecting increased inventory pressure for traditional automakers under NEV squeeze. Upstream side, cathode grade lithium carbonate price rebounded to 17.45 十万元/tonne (174,500 CNY/tonne), up 3.6% week-on-week; while LFP and ternary prism cell prices remained stable, indicating raw material price hikes not fully transmitted to battery finished goods link. Recent intensive new vehicle launches constitute potential catalysts. Report sorted out key events in coming weeks: NIO ET5/EC6 facelift, Leapmotor C series facelift, BYD Datang & N8L flash charge version, Li Auto L8 facelift and XPeng MONA L03 etc. will list or open pre-sale successively. These new model launches expected to take over end-May pulse effect, become key variables for next stage order repair.

Analysis framework

The research report adopts an 'High-Frequency Weekly Data Tracking + Full Industry Chain Price Monitoring' analysis framework. First, by tracking key OEM weekly order volumes and their YoY/MoM changes, capturing marginal fluctuations on demand side and distinguishing overall trends from individual differentiation; second combined with CPCA published retail/wholesale sales to calculate penetration rates, quantifying NEV substituting ICE long-term process; third through comparing NEV and ICE dealer discount rate changes, judging terminal competition pattern and pricing power ownership; finally linked with upstream lithium carbonate and midstream cell prices, assessing cost side changes' potential impact on industry chain profit distribution. This four-dimensional integrated tracking system helps grasp industry prosperity turning points more timely outside monthly low-frequency data.

Methodology notes

  • Industry/Industrial Analysis FrameworkPenetration S-curve

    NEV Penetration Rate

    Report focuses on NEV retail/wholesale penetration rate indicator. This indicator measures proportion of new technology products in total market, usually entering S-curve acceleration phase after penetrating 30%-50% interval. Weekly report data shows penetration rate broke through 66%, indicating industry in fast substitution stage, at this time should focus more on stock replacement speed than simple total volume growth.

  • Industry/Industrial Analysis FrameworkUpstream-Midstream-Downstream Transmission

    Upstream Raw Materials and Midstream Battery Price Linkage

    Report synchronously tracked cathode-grade lithium carbonate (upstream) and prism cell (midstream) prices. Through analyzing latency and amplitude difference between two changes, can judge whether cost pressure smoothly transmitted. This week lithium carbonate up 3.6% while cell prices flat, hinting midstream link possibly digesting cost increase, or downstream vehicle manufacturers strong pricing power suppressed battery price hike.

  • Industry/Industrial Analysis FrameworkVolume-price decomposition

    Order Volume and Terminal Discount Rate Combined Analysis

    Report not only looks at absolute value changes in order volume, but combines with dealer discount rate for 'volume-price' cross-validation. If order declined but discount narrowed (such as this week NEV sector), may mean manufacturers actively controlling prices or demand structure optimization; if order declined and discount expanded, then hints price war intensified. Such analysis more accurately reflects real market supply-demand health than single sales volume indicator.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

  • BYD
    Industry leader, strong order resilience and best terminal discount control
    Strengths
    Weekly order MoM only down 4%, better than industry; dealer discount rate only 4.27%, far below industry average 7.54%
    Comparison
    Compared to other OEMs, BYD performed most prominent in order stability and price control
  • Geely Automobile
    Traditional OEM transformation representative, week order grew counter-trend
    Strengths
    Week 24 order MoM grew 8%, one of few achieving positive growth among mainstream OEMs
    Comparison
    Weekly performance better than BYD and Tesla
  • NIO
    Premium pure EV brand, YTD cumulative growth leading
    Strengths
    YTD order grew 93%, growth ranked first
    Comparison
    Cumulative growth significantly higher than HIMA (+31%) and Tesla (+3%)
  • Harmony Intelligence (HIMA)
    Huawei empowered brand, maintaining high growth momentum
    Strengths
    YTD order grew 31%, May single month orders reached 143,000 units creating stage high
    Comparison
    Growth rate second only to NIO, significantly outperforming industry

Key data

  • Week 24 Key OEM NEV Order YoY-14%Affected by fading pulse effect of end-May new vehicle launch, YoY growth turned negative
  • Week 24 Key OEM NEV Order MoM-13%MoM also showed double-digit decline
  • June 1-7 NEV Retail Penetration Rate66.7%Further improved compared to May full month 63%
  • June 1-7 NEV Wholesale Penetration Rate67.2%Significantly improved compared to May full month 61.1%
  • NEV Dealer Average Discount Rate7.54%As of June 13, narrowed from last week 7.79%
  • ICE Dealer Average Discount Rate19.56%As of June 13, slightly increased from last week 19.54%
  • Cathode Grade Lithium Carbonate Price17.45 ten-thousand CNY/tonneUp 3.6% week-on-week
  • LFP Prism Cell Price0.35 CNY/WhFlat week-on-week

Impact & implications

For OEMs, short-term order adjustment belongs to normal rhythm switch after new vehicle launch, key lies in whether follow-up new models can connect demand. Continuous rise in penetration rate confirmed irreversibility trend of NEV substitution, top-tier brands with strong product power and pricing power (like BYD, Geely) showed stronger risk resistance ability in industry volatility. For upstream material links, if lithium carbonate price rebound persists, it will improve lithium salt enterprise profit expectations, but need observe downstream battery factories and OEMs acceptance. Terminal discount narrowing signal positive, indicating most intense phase of price wars may have passed, industry profit repair window opening.

What to watch

  • Effect of dense new vehicle launches late June to early July (BYD Datang/N8L, Li Auto L8 facelift, XPeng MONA L03 etc.)
  • CPCA released complete June monthly production and sales data on July 10-11
  • Transmission situation of upstream lithium carbonate price hikes to midstream cells and whole vehicle costs
  • Whether NEV dealer discount rates continue to narrow or widen again
Zhejiang ICP No. 2022035445-5
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