China’s Monthly Auto Sales Fall 28%

By the Editorial Team · Tuesday, October 13, 2026

China’s passenger car sales fell 28% year-over-year in September, marking the 13th consecutive month of decline amid weak demand for traditional vehicles and higher costs delaying new launches. Despite the drop, new-energy vehicles made up 67% of sales, and exports surged 74%, as manufacturers shift focus overseas amid slowing domestic demand and market challenges.

China's passenger car sales declined sharply in September, continuing a yearlong downward trend despite the start of the traditional peak buying season. According to data released Monday by the China Passenger Car Association (CPCA), retail sales of passenger vehicles dropped 28% compared to the same month last year, totaling 1.62 million units. This figure reflects a modest 5% increase from August but marks the 13th consecutive month of year-over-year decline.

The CPCA attributed the weak performance to reduced demand for vehicles powered by traditional internal combustion engines. Persistently high oil prices and sluggish consumer sentiment across the broader economy are cited as key factors dampening enthusiasm for car purchases. Additionally, escalating memory-chip costs have delayed new vehicle launches, further constraining sales volumes.

While China’s automotive market had experienced rapid growth in previous years, recent developments point to a phase of consolidation. Notably, in September, Guangzhou Automobile Group announced plans to acquire a 50% stake in FAW Toyota from FAW Group. Industry players Geely and NIO also established a partnership focused on battery swapping and charging infrastructure.

New-energy vehicles (NEVs), which comprise electric cars and plug-in hybrids, accounted for a record 67% of total passenger car sales in September. However, retail sales of NEVs nevertheless declined 17% year-over-year to 1.08 million units. To counter slowing domestic demand, many Chinese manufacturers are increasingly focusing on overseas markets. Passenger car exports surged 74% in September to 917,000 units, with NEV exports more than doubling.

Tesla’s Shanghai plant contributed significantly to export figures, shipping 30,529 vehicles in September and selling 95,366 units domestically during the month.

Looking ahead, the CPCA forecasts a muted recovery in China’s auto sector for October. Persistent weakness in consumer confidence, ongoing price competition among domestic automakers, and demographic shifts are expected to continue limiting demand. The association also warned that export growth may slow due to heightened trade tensions with the European Union.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.