- China’s retail market cooled sharply into September’s peak season as passenger-car retail fell 19% YoY to 210K units in Sept. 1–6, reflecting a post-subsidy comparison hangover and weaker gasoline demand.
- NEV sales outperformed with 150K retail units (71.5% retail penetration) and 156K wholesale units (75.1% wholesale penetration), while YTD NEV wholesale reached 9.93M units, up 9% YoY.
- Competition is concentrated on electrified segments as gasoline volumes plunged 53% wholesale, exposing risks around model depth, supply-chain scaling, and demand volatility into the peak sales weeks.
CPCA data showed that China’s passenger-car retail sales totaled 210K units from Sept. 1–6, down 19% year over year and 1% from the same period in August.
Passenger-car wholesale sales reached 207K units during the period, down 21% YoY but up 13% from the previous month.
September marks the start of China’s traditional peak sales season, but the market got off to a weak start. Daily retail sales averaged 35K units in the first week, down 19% YoY and 1% MoM.
For the year to date, passenger-car retail sales reached 11.93M units, down 21% YoY. Wholesale sales totaled 17.39M units, down 5%, leaving the broader market in a prolonged adjustment phase.
The NEV market continued to outperform the overall passenger-car market. NEV retail sales totaled 150K units from Sept. 1–6, down 3% YoY but up 15% from the same period in August. The retail penetration rate rose to 71.5%, moving further above the previous month’s level.
NEV wholesale sales reached 156K units, up 2% YoY and 20% from the previous month. The wholesale penetration rate climbed to 75.1%, making NEVs the main driver of automakers’ shipments.
For the year to date, NEV wholesale sales reached 9.93M units, up 9% YoY, while retail sales totaled 6.82M units, down 12%.
Several factors weighed on the weak September start. The China Passenger Car Association (CPCA) noted that a rush to buy vehicles ahead of subsidy withdrawals in some regions drove September 2025 retail sales to a record high. The unusually high comparison base is now weighing heavily on this year’s figures.
Gasoline prices have also risen by more than RMB 830 per tonne since late July, further suppressing demand for conventional gasoline-powered vehicles.
The production mix shows an increasingly clear divide between gasoline and electrified vehicles. China produced 101K conventional gasoline-powered light vehicles in the first week of September, down 47% YoY but up 86% from the same period in August.
Production of hybrid and plug-in hybrid models totaled 85K units, down 11% YoY but up 35% from the previous month.
Gasoline-vehicle wholesale sales fell 53%, making them the main drag on overall wholesale volumes. Most NEV brands currently lack strong-selling models, yet automakers have maintained relatively stable production schedules. Production, sales and direct orders have increasingly shifted toward target-based sales management.
Overall, China’s passenger-car market remained under pressure in the first week of September, weighed down by an unusually high comparison base. NEV penetration, however, has climbed above 71%.
As the traditional peak season progresses, whether retail demand can gradually recover will be a key indicator for the market in the coming weeks.
Discover more from ChinaEVHome
Subscribe to get the latest posts sent to your email.
