According to a Reuters report, more electric cars and plug-in hybrids were sold in China, the world’s largest new car market, in July than non-hybrid internal combustion engine vehicles.

Sales of plug-in cars rose 37% last month compared to the same period last year, reaching a record high 50.7% market sharesays the report, which cites data from the China Passenger Car Association.

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Electric vehicles and plug-in hybrids – collectively referred to as “New Energy Vehicles” (NEVs) in the Chinese industry – have sold well over the past decade due to generous government incentives, but those sales have taken an even bigger leap forward recently. Three years ago, NEVs accounted for just 7% of all car sales in China, notes Reuters, attributing recent sales growth to heavy investment in EV supply chains that has bolstered domestic automakers.

Increased sales of electric vehicles and plug-in hybrids are also occurring during a general downturn in China’s new car market. The July sales increase came after 28.6 percent growth in June, according to Reuters. Electric vehicles in particular saw sales rise 9.9 percent in June and 14.3 percent in July. Overall, however, Chinese auto sales fell 3.1 percent last month, the fourth consecutive month of declining sales.

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While China counts fully electric vehicles and plug-in hybrids together, there is an important difference between the two when it comes to predicting lifetime CO2 emissions. When plug-in hybrids are not plugged into the power grid, they increase oil demand just like gasoline cars.

Meanwhile, electric vehicles and hybrids 18% of the US vehicle market in the first quarter of 2024, according to the Energy Information Administration. High tariffs are keeping Chinese automakers from bringing their electric vehicles and plug-in hybrids to market, and that is unlikely to change regardless of the outcome of this year’s presidential election.