China Auto Retail Sales Drop 24% in Oct 1–11 Despite Sequential Rebound

China’s passenger vehicle retail sales remained under pressure in early October, according to the latest data from the China Passenger Car Association (CPCA).

From October 1 to 11, retail sales of passenger vehicles nationwide totaled 459,000 units, down 24% year on year but up 7% from the same period in September.

Wholesale sales by passenger vehicle manufacturers totaled 385,000 units over the same period, down 18% year on year and 15% from the previous month.

Retail sales improved month on month, but wholesale volumes weakened over the same period, suggesting that the market has yet to see a broad-based recovery.

Since the beginning of the year, cumulative passenger vehicle retail sales have reached 13.793 million units, down 22% year on year, while wholesale sales totaled 20.122 million units, down 6%.

The sharper decline in retail sales compared with wholesale shipments reflects continued pressure on end-market demand and a gap between automakers’ deliveries and consumers’ actual purchasing activity.

The new energy vehicle (NEV) market performed somewhat better than the broader passenger vehicle market, although retail sales also remained under pressure.

From October 1 to 11, retail sales of NEV passenger vehicles reached 281,000 units, down 13% year on year and 7% month on month. NEVs accounted for 61.2% of total passenger vehicle retail sales.

Wholesale sales of NEV passenger vehicles totaled 301,000 units, up 6% year on year but down 11% month on month, with NEVs accounting for 78.1% of total wholesale sales.

Year to date, cumulative retail sales of NEV passenger vehicles reached 8.039 million units, down 13% year on year, while wholesale sales totaled 11.75 million units, up 9%.

The decline in the internal-combustion engine vehicle market was more pronounced.

According to the CPCA, domestic production of fuel-powered vehicles fell 51% during the first two weeks of October, while wholesale sales by manufacturers dropped 53%.

As NEVs continue to gain market share, weakening demand for fuel-powered vehicles is also weighing on the overall passenger vehicle market.

In terms of sales timing, the Mid-Autumn Festival fell in late September this year, leaving October with a relatively longer effective sales window.

National Day auto shows, local government subsidies and promotional campaigns by automakers also brought some additional traffic to dealerships.

Passenger vehicle retail sales in the first 11 days of October rose 7% from the same period in September, but remained sharply lower year on year.

This suggests that the short-term lift from promotions has not been sufficient to reverse the broader market weakness.