- China’s NEV retail sales fell 13% year‑on‑year from Oct. 1–18, reflecting automakers’ need to cut prices, push localization and capture share as overall passenger demand softens.
- Retail NEV volumes were 520,000 units Oct. 1–18, accounting for 65.9% of passenger retail sales; NEV wholesale shipments were 655,000 units, up 5% year‑on‑year.
- NEVs target mainstream passenger segments and beat ICE performance, but execution risks include weak retail demand, inventory gaps versus wholesales, and shrinking ICE production.
China’s passenger cars’ retail sales totaled 789,000 units from October 1 to 18, 2026, down 26% year over year but up 2% from the same period in September, according to data from CPCA.
Wholesale shipments by passenger vehicle manufacturers totaled 853,000 units over the same period, down 20% year over year and 3% from the previous month.
So far this year, cumulative passenger vehicle retail sales have reached 14.123 million units, down 22% year over year, while wholesale sales totaled 20.589 million units, a decline of 6%.
The steeper decline in retail sales compared with wholesale shipments reflects continued pressure on consumer demand, with a gap remaining between automakers’ shipments and actual vehicle purchases.
Although retail sales improved slightly from September, the recovery has not been enough to reverse the year-over-year downturn.
New energy passenger vehicles performed relatively better than the overall market, although retail sales remained under pressure.
From October 1 to 18, retail sales of new energy passenger vehicles totaled 520,000 units, down 13% year over year and 2% month over month. NEVs accounted for 65.9% of total passenger vehicle retail sales.
Wholesale sales of new energy passenger vehicles reached 655,000 units over the same period, up 5% year over year and 1% month over month. Their share of total passenger vehicle wholesale sales stood at 76.8%.
Year to date, cumulative retail sales of new energy passenger vehicles reached 8.278 million units, down 13% year over year, while wholesale sales totaled 12.104 million units, up 9%.
Production of conventional internal-combustion-engine vehicles was weaker.
During the first two weeks of October, output of conventional-fuel light vehicles nationwide totaled 153,000 units, down 43% year over year and 16% from the same period in September.
Combined production of hybrid and plug-in hybrid vehicles reached 152,000 units over the same period, down 18% year over year but up 2% month over month.
The sharper production decline for conventional-fuel vehicles points to mounting pressure on the traditional internal-combustion-engine vehicle market.
The data for October 1–18 indicate that China’s auto market has seen a modest month-on-month recovery while remaining significantly weaker than a year earlier.
NEVs have proved more resilient than the broader market, but retail demand remains under pressure. Conventional-fuel vehicles, meanwhile, are facing a more pronounced contraction.
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