Chinese car sales slump in September as home demand falls and exports surge
China's September passenger car sales fell 28 to 29 percent year on year, the largest drop this year, in a month that usually marks the peak of the buying season. BYD and Geely export sales more than doubled over the same period as their home sales weakened.
Sales fall in a month that usually peaks
China's passenger car sales fell in September 2026 year on year, the largest drop this year according to figures from the China Passenger Car Association (CPCA) reported by Nikkei Asia. The headline decline appears as 29 percent in one report and 28 percent in another, both citing Nikkei Asia. September is usually called the 'golden' month of the industry, the peak of the buying season, but this year it brought no expected rebound in the world's largest car market. In a CPCA survey, more than a third of dealers said the seasonal sales increase did not appear at all this year, and consumers are postponing purchase decisions.
Combustion cars slump as electrified models hold up
Sales of combustion-engine cars fell 43 percent year on year to 534,000 units in September. Sales of electric vehicles and plug-in hybrids fell 16.7 percent to 1.08 million units over the same comparison. Because the decline in conventional vehicles was deeper, the electrified share of monthly new car sales reached a record 67 percent.
- Combustion-engine cars (down 43% y/y)
- 534000 units
- Electric and plug-in hybrid cars (down 16.7% y/y)
- 1080000 units
Exports offset the domestic slump
The weakness at home contrasts with results abroad, which Nikkei Asia says are visible in the manufacturers' own reports. BYD and Geely, the largest electric vehicle makers according to the reports, recorded export sales jumps in September of 154 percent and 162 percent year on year. Over the same period their sales inside China fell 13 percent for BYD and 20 percent for Geely.
- BYD exports
- 154 %
- Geely exports
- 162 %
- BYD China sales
- -13 %
- Geely China sales
- -20 %
Analysts point to subsidies, tax breaks and fuel prices
Nomura analysts attribute the fall in domestic demand to limits on government subsidies for vehicle replacement and the phase-out of tax incentives. Experts point out that high fuel prices resulting from the conflict in the Middle East favour the expansion of Chinese cars abroad. Nomura cautions, however, that strong exports will provide only 'limited' compensation for the weakening domestic market.
