Preliminary figures released by the China Passenger Car Association on Saturday showed that retail deliveries totalled 1.702 million vehicles, compared with approximately 2.24 million during September 2025. Sales nevertheless increased 10% from August, reflecting a month-end improvement that failed to offset the substantial annual decline.
New-energy vehicle sales, covering battery-electric and plug-in hybrid models, declined 12% year on year to 1.141 million units. However, deliveries rose 14% from August, demonstrating stronger monthly momentum than the overall passenger vehicle market.
Electrified vehicles accounted for 67.1% of passenger vehicle retail sales during September, highlighting their growing dominance even as total purchases weakened. Their share of manufacturer wholesale deliveries reached 66.1%, according to the association.
The figures reveal a widening divergence between domestic consumer purchases and manufacturers’ distribution volumes. Passenger vehicle wholesale sales reached 2.528 million units, declining 10% annually but increasing 7% from August.
New-energy vehicle wholesale deliveries performed considerably better, rising 11% year on year to 1.672 million units. They also increased 11% from August, indicating that manufacturers maintained comparatively strong shipments despite softer domestic retail demand.
For the first nine months of 2026, cumulative passenger vehicle retail sales reached 13.418 million units, representing a 21% contraction against the corresponding period last year. The sustained decline illustrates the difficulty facing manufacturers seeking to stimulate purchases in the world’s largest automotive market.
New-energy vehicle retail sales totalled 7.816 million units between January and September, falling 12% annually. Their comparatively smaller contraction helped increase their proportion of overall passenger vehicle purchases.
Wholesale passenger vehicle deliveries reached 19.711 million units during the nine-month period, down 6% from a year earlier. New-energy wholesale shipments, however, increased 9% to 11.45 million units, reinforcing the contrast between production distribution and domestic retail activity.
The association’s figures suggest that electrification continues to reshape market demand without generating sufficient additional purchases to reverse the broader contraction.
Traditional petrol-powered vehicles faced particularly difficult conditions. The association identified higher fuel prices and changing consumer preferences as factors weighing on demand for conventional models.
It also observed that September, normally a stronger selling period for China’s automotive industry, had produced an unusually uneven performance. Manufacturers were competing for existing customers rather than benefiting from a substantial expansion in overall demand.
The industry body’s assessment indicated that gains were concentrated overwhelmingly among new-energy vehicles, while conventional petrol-powered models struggled to attract additional buyers.
Competition has intensified as manufacturers attempt to defend market positions, sustain factory utilisation and meet delivery targets. The association noted that many new-energy brands lacked particularly strong-selling models, complicating efforts to maintain sales momentum.
Dealerships also faced mounting operating pressure despite relatively low inventories. The association highlighted tensions across the automotive supply chain, where manufacturers, suppliers and retailers were experiencing differing financial conditions.
September’s final days nevertheless provided an important boost to deliveries. New-energy retail sales had reached approximately 827,000 units during the first 27 days, representing a 20% annual decline.
The full-month total of 1.141 million indicates that roughly 314,000 additional vehicles were sold during the final three days, substantially narrowing the annual contraction.
That acceleration lifted the new-energy share of passenger vehicle retail sales above the 65.7% recorded during the month’s first 27 days.
The figures also underline the importance of distinguishing wholesale deliveries from purchases by domestic motorists. Wholesale volumes include vehicles distributed through manufacturers’ sales channels and exports, while retail figures more directly reflect domestic consumer demand.
The stronger wholesale performance therefore does not necessarily indicate a corresponding improvement in purchasing conditions within China.
The association’s preliminary statistics cover September 1 to 30 and form part of its regular monitoring of passenger vehicle market activity.
Its assessment places particular emphasis on the contrasting performance of conventional and electrified vehicles, alongside the differences between manufacturers’ shipments and dealership sales.
The September figures also showed that new-energy vehicles represented nearly two-thirds of manufacturer wholesale volumes, broadly consistent with their dominant position in domestic retail purchases.
The association published the figures as part of its market review covering September 28 to 30, incorporating preliminary estimates for the completed month.
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