China's Auto Sales Fall Despite Traditional Peak Season
By Jiahui Huang
China's monthly auto sales weakened yet again in September, with the traditional peak season failing to bring cheer.
Retail sales of passenger cars fell 28.0% in September from a year earlier to 1.62 million units, the China Passenger Car Association said Monday. Sales rose 5.0% compared with August.
After 12 consecutive months of declines, the country failed to report a recovery in sales in September, the start of the traditional peak season. The association attributed the weakness to shrinking demand for cars powered by traditional fuels, as high oil prices and overall weak consumption sentiment in China damped consumer sentiment.
Higher memory-chip costs are also slowing the pace of new vehicle launches in China, weighing on overall sales, the CPCA added.
After years of rapid expansion and strong sales a year earlier, China's auto market has been going through a slow period with some early signs of consolidation. Last month, Guangzhou Automobile Group said it would acquire a 50% stake in FAW Toyota from FAW Group. Geely and NIO also reached a battery swapping and charging partnership.
Sales of new-energy vehicles, which comprise electric-vehicles and plug-in hybrids, as well as exports have become the major themes in China's auto market.
NEV cars accounted for a record 67% of total car sales in September, the agency said. However, retail sales of new-energy cars fell 17% to 1.08 million units in September.
To offset slowing demand in China's market, many Chinese automakers has turned to overseas markets for growth. In September, exports of China's NEVs more than doubled again. Exports of passenger cars rose 74% to 917,000 units last month, CPCA data showed.
In September, Tesla exported 30,529 units made at its Shanghai plant and sold 95,366 units.
The CPCA doesn't expect a strong recovery in China's auto sales in October. The overall consumption sentiment remains weak for Chinese residents, and they tend to remain on the sidelines instead of make purchase decisions amid price wars among Chinese automakers. Demographic changes and high oil prices could also hurt sales.
Exports are also expected to slow due to trade pressure in the European Union, the agency said.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
October 12, 2026 03:18 ET (07:18 GMT)
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