Retail sales of new energy vehicles (NEVs) in China fell 16.7% year-on-year to 1.084 million units in September 2026, although they increased 7.8% from August, according to data released by the China Passenger Car Association (CPCA) on Monday.
The decline marked the ninth consecutive month of year-on-year decreases in NEV retail sales. From January through September, cumulative sales reached 7.758 million units, down 12.8% compared with the same period in 2025.
Despite the retail downturn, NEVs accounted for a record 67.0% of China’s passenger vehicle retail sales in September, an increase of 9.1 percentage points year-on-year and 1.7 percentage points from August.
BEVs Outperform Plug-in Hybrids and EREVs
Battery-electric vehicles (BEVs) recorded stronger retail performance than plug-in hybrid electric vehicles (PHEVs) and extended-range electric vehicles (EREVs).
September retail sales of BEVs totaled 765,000 units, down 7.38% year-on-year but up 9.60% month-on-month.
PHEV retail sales reached 232,000 units, a decline of 35.56% from a year earlier. The drop widened from the 28.03% year-on-year decrease recorded in August, although sales increased 2.65% from the previous month.
EREV retail sales totaled 88,000 units, down 19.27% year-on-year but up 8.64% month-on-month.
Combined PHEV and EREV retail sales reached 320,000 units, a decrease of 31.77% year-on-year and an increase of 4.23% from August.
NEV Penetration Varies by Brand Segment
NEV adoption continued to differ substantially across vehicle brand categories.
The penetration rate reached 84.5% among domestic Chinese brands and 44.9% among luxury brands in September. Mainstream joint-venture brands recorded a much lower rate of 15.9%.
Retail sales of NEVs from domestic brands fell 19% year-on-year. In contrast, NEV retail sales at mainstream joint-venture brands increased 36%, while luxury-brand sales declined 8%.
The CPCA attributed steep declines in domestic A00-segment electric vehicles partly to unfavorable subsidy policies. The association also cited changes in the timing of holidays and the comparison with purchases made ahead of subsidy expirations in some provinces in September 2025.
Wholesale Sales Rise as BEVs Lead Growth
NEV wholesale sales presented a different picture from retail demand. Automakers’ wholesale shipments increased 11.3% year-on-year and 10.0% month-on-month to 1.666 million units in September.
The wholesale NEV penetration rate reached a record 65.4%, up 12 percentage points from a year earlier.
BEVs were the only powertrain category among NEVs to record year-on-year wholesale growth. Wholesale sales of battery-electric models rose 18.3% to 1.126 million units.
PHEV wholesale sales edged down 0.1% to 423,000 units, while EREV wholesale sales declined 4.0% to 117,000 units.
The divergence between retail and wholesale figures indicates that shipments from automakers increased even as consumer purchases remained below the previous year’s level.
NEV Exports Support the Market
Exports continued to provide support for China’s passenger vehicle industry. Total passenger vehicle exports rose 73.7% year-on-year to 917,000 units in September, accounting for 36% of automakers’ passenger vehicle sales.
NEV exports increased 163.5% year-on-year and 7.7% month-on-month to 558,000 units. They represented 60.8% of total passenger vehicle exports, up 21 percentage points from September 2025.
For the first nine months of 2026, NEV exports reached 3.887 million units, an increase of 138.8% year-on-year.
The export figures highlight the growing contribution of overseas markets to China’s NEV industry amid weaker domestic retail demand.
Overall Passenger Vehicle Sales Decline
China’s total passenger vehicle retail sales fell 28.0% year-on-year to 1.618 million units in September, although they rose 5.0% from August. Sales for the first nine months totaled 13.33 million units, down 21.7% year-on-year.
Retail sales of gasoline-powered vehicles dropped 43% from a year earlier. Within that category, conventional gasoline vehicle sales declined 49%, while conventional hybrid sales increased 25%.
The CPCA identified several factors behind September’s weaker retail market. The Mid-Autumn Festival holiday fell in late September, when sales weakened notably. Purchases made ahead of subsidy expirations in some provinces in September 2025 also created a higher comparison base.
The association further cited high oil prices as a factor weighing on demand for gasoline-powered vehicles. In addition, increases in memory and chip prices associated with AI-related demand, alongside supply shortages, slowed the sales contribution from new NEV models.
The September data therefore show contrasting trends across China’s automotive market: retail NEV demand remained below year-earlier levels, while wholesale shipments and exports grew, and BEVs continued to outperform plug-in hybrid and extended-range models.
