Toyota And Honda Are Losing China As EV Share Hits 61% And Gas Car Sales Collapse

The Chinese automobile market has rejected internal combustion engine (ICE) vehicles. For decades, legacy Japanese automakers like Toyota and Honda stood tall in the Chinese market, leveraging long-standing reputations for reliable ICE vehicles. However, new data from April 2026 tells the story of EV dominance.According to the latest figures from the China Passenger Car Association (CPCA), the retail penetration rate for New Energy Vehicles (NEVs)—which includes plug-in hybrids and pure battery-electric vehicles—surpassed the 60 percent threshold for the first time, reaching a historic 61.4 percent. During April, NEV retail sales hit 849,000 units; conversely, traditional ICE vehicles experienced a severe 37 percent year-over-year collapse, dropping to just 530,000 units. The tides have all but turned in China.

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