- China’s passenger-car retail sales plunged 24% year‑on‑year to 1.702 million units in September, reflecting persistent demand pressure despite seasonal promotions and a late‑month surge in daily sales.
- NEV retail sales reached 1.141 million units in September, down 12% YoY but up 14% MoM, with NEVs accounting for 67.1% of passenger‑car retail sales and NEV wholesale volume at 1.672 million units (wholesale penetration 66.1%).
- The shift favors electrified models over gasoline vehicles, pressuring legacy automakers and dealerships, while execution risks include uneven delivery timing, production swings across powertrains, and weaker retail demand scaling.
China’s passenger-car retail sales fell 24% year over year to 1.702 million units in September 2026, although they rose 10% month over month, according to the latest data from the China Passenger Car Association (CPCA).
Retail sales totaled 13.418 million units in the first nine months of the year, down 21% YoY. Despite the start of the traditional peak sales season, the market continued to face significant year-over-year pressure.
Weekly figures showed a pronounced late-month surge. Average daily retail sales stood at 35,000 units in the first week of September. Sales weakened around mid-month, partly due to the timing of the Mid-Autumn Festival holiday, before average daily sales jumped to 148,000 units in the fifth week.
Wholesale sales improved month over month. Passenger-car manufacturers wholesaled 2.528 million units in September, down 10% YoY but up 7% MoM. Wholesale volume reached 19.711 million units in the first nine months, down 6% YoY.
New energy vehicles (NEVs) proved more resilient than the broader passenger-car market.
NEV retail sales reached 1.141 million units in September, down 12% YoY but up 14% MoM. Their share of passenger-car retail sales rose to 67.1%.
Wholesale sales continued to grow. NEV wholesale volume reached 1.672 million units in September, up 11% both YoY and MoM, with the wholesale penetration rate reaching 66.1%.
From January to September, cumulative NEV wholesale sales totaled 11.45 million units, up 9% YoY. Retail sales reached 7.816 million units, down 12%. Both figures outperformed the broader passenger-car market.
On the production side, output of conventional gasoline-powered light vehicles totaled 330,000 units in the first three weeks of September, down 52% YoY but up 47% from the same period in August.
Production of hybrid and plug-in hybrid models reached 265,000 units over the same period, down 23% YoY but up 21% month over month. The divergence between conventional gasoline vehicles and electrified models remained evident.
Overall, seasonal promotions and a wave of new model launches provided some support, but September’s market performance fell short of the strength typically associated with the peak sales season.
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