Passenger car sales in China fall 28%, exports rise 74% — OilPrice

Retail sales of passenger cars in China fell by 28% year on year in September to 1.62 million units. This marked the 12th consecutive month of annual sales declines, although the figure rose by 5% compared with August, OilPrice reports, citing the China Passenger Car Association (CPCA).

Share of electric vehicles and hybrids

Electric vehicles and plug-in hybrids accounted for 67% of passenger car sales in September. At the same time, retail sales of such vehicles fell by 17% from September of the previous year to 1.08 million units.

The CPCA said total sales volumes faced significant year-on-year pressure, while the monthly recovery was limited. According to the association, sales of internal combustion engine vehicles were declining faster, while new energy vehicles retained leading positions in the market.

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Exports became more important

Overseas shipments of passenger cars, including assembly kits, rose by 73.7% to reach 917,000 units. Exports accounted for 36% of manufacturers' sales, compared with 19% a year earlier.

The CPCA noted that overseas shipments already exceed half of sales for some automakers, while their share is approaching 70% for a growing number of companies. At the same time, the sustainability of such demand has come into question due to expectations that Europe may limit imports of Chinese hybrid vehicles to 350,000 units per year.

Pressure on dealers

The association also linked the slowdown in sales growth of new energy vehicles to rising prices for memory and chips amid AI-related demand and limited supply. According to the CPCA, dealers are purchasing new cars more cautiously and assess the seasonal effect of “golden September and silver October” as significantly weaker than in previous years.