China's NEV Retail Reaches 1.307 Million in Sept, Penetration Nears 60%

In the first nine months of 2025, China’s NEV retail totaled 8.878 million units, up 24% YoY.

On October 11, Cui Dongshu, Secretary-General of the China Passenger Car Association (CPCA), released the latest data showing that China’s passenger car market continued its recovery in September 2025.

From September 1–30, retail sales totaled 2.239 million units, up 6% year-on-year (YoY) and 11% month-on-month (MoM). Year-to-date (YTD) retail reached 17.004 million units, up 9% YoY.

A bar and line graph illustrating the weekly retail sales volume of passenger cars in China for September 2025, including comparisons to previous years. The graph uses different colors to represent data from 2023, 2024, and 2025, with annotations for percentage changes. — Weekly retail sales volume of China’s passenger cars for September 2025

New energy vehicles (NEVs) remain the main driver in the retail segment. September NEV retail reached 1.307 million units, up 16% YoY and 17% MoM. NEVs accounted for 58.5% of total passenger car retail. YTD NEV retail totaled 8.878 million units, up 24% YoY.

At the wholesale level, passenger car shipments in September reached 2.770 million units, up 11% YoY and 12% MoM. YTD wholesale totaled 20.812 million units, up 13% YoY.

A bar and line graph illustrating passenger car sales data for September 2025 in China, showing retail and wholesale trends across different weeks, with comparisons to previous years. — Weekly wholesale volume of China’s passenger cars for September 2025

NEV wholesale in September totaled 1.489 million units, up 21% YoY and 15% MoM, representing a NEV wholesale penetration of 53.8%. YTD NEV wholesale reached 10.433 million units, up 32% YoY.

Weekly trends showed stable performance in the first two weeks due to last year’s baseline. Sales began to strengthen in the third week, with average daily retail in the fifth week surpassing 150,000 units, a 43% YoY increase.

Cui Dongshu noted that early September sales were slightly weak in some regions due to adjustments in “trade-in for new” policies, but local subsidy rollouts and the Chengdu Auto Show’s new model launches gradually stimulated end-user demand.

Although this year’s “Golden September, Silver October” did not see explosive growth, the market showed a steady upward trend. Structural challenges remain: high-end, large-size vehicles are concentrated, while supply of entry-level, high-volume models is insufficient, limiting broader growth potential. Some local subsidy policies favor higher-priced models, partially constraining demand in county and rural markets.

In addition to domestic demand recovery, Chinese brands’ overseas expansion has also supported sales. Since Q2, China’s auto exports have remained high, with plug-in hybrids performing strongly in Russia and other markets. Some brands are beginning to positively compete with joint-venture brands abroad.

Overall, September passenger car sales showed moderate growth, supported by policy incentives and new model launches. NEVs are approaching 60% market penetration, becoming an integral part of market fundamentals.

Looking ahead to Q4, concentrated pre-expiry purchases of purchase tax incentives and whether local subsidy policies continue or increase will be key factors influencing year-end market trends.