China's monthly passenger vehicle retail sales hit record high in September 2025

Shanghai (Gasgoo)- China's passenger vehicle market posted record retail sales of 2.241 million units in September, marking a 6.3% year-on-year increase and an 11% rise from August, according to data from the China Passenger Car Association ("CPCA"). Cumulative retail sales for the first nine months of 2025 reached 17.005 million units, up 9.2% from a year earlier.

September's performance surpassed the previous all-time high of 2.19 million units set in 2017 by 50,000 vehicles, highlighting strong demand momentum ahead of the anticipated phase-out of certain purchase incentives toward the year's end.

The overall growth trend aligns with forecasts made earlier this year: retail sales accelerated from a modest 1.2% growth rate in the first two months to 11% by midyear, before easing to around 6% between July and September as the market stabilized at a high base.

A shift away from excessive price competition is helping the market stabilize, with fewer aggressive discounts and a more measured pace of promotional activity. In September, 23 passenger vehicle models saw price cuts—down from 36 a year earlier—suggesting that automakers are easing back from the "price war" dynamics that dominated in previous cycles.

Discount levels for new energy vehicles (NEVs) averaged around 10.2%, up 2.6 percentage points year-on-year but only slightly higher than in August, reflecting continued but controlled promotional intensity. Traditional fuel vehicles saw an average discount rate of 23.9%, up 1 percentage point from last month, signaling moderate competitive pressure as inventories normalize.

China's self-owned brands continued to outpace the broader market, with retail sales climbing 13% year-on-year in September to 1.5 million units, representing nearly two-thirds of all passenger vehicle sales nationwide. Their market share reached 66.9% for the month—up 3.6 percentage points from a year earlier—and averaged 64.8% in the first nine months of 2025, an increase of 5.9 percentage points year-on-year.

The gains were driven by expanding NEV adoption and robust export growth, while major legacy automakers such as Geely, Changan, and Great Wall Motor showed strong progress in electrification and brand upgrading, helping lift their overall share in the domestic market.

Mainstream joint-venture brands continued to face pressure, with September retail sales down 6% year-on-year to 490,000 units, though up 4% from August. German marques saw their combined market share slip to 14.3%, a decline of 2.3 percentage points from a year earlier, while Japanese brands fell 1.1 percentage points to 11.6%.

U.S. brands performed comparatively better, led by SAIC-GM's 48% year-on-year rebound, lifting the overall American-brand share slightly to 5.8%. Korean and other West European brands recorded marginal declines amid intensifying competition from Chinese automakers.

Luxury passenger vehicle sales reached 240,000 units in September, slipping 1% year-on-year but rising a solid 16% from the previous month. Their market share stood at 10.8%, down 0.8 percentage points from a year earlier. Analysts note that traditional luxury marques are now under even greater competitive pressure than joint-venture brands, as high-end Chinese NEV makers gain traction among affluent buyers.

China's passenger vehicle wholesalers delivered 2.803 million units in September, setting a new record for the month. The figure marked a 12.4% year-on-year increase and a 13% rise from August. Cumulative wholesale volumes for the first nine months of the year reached 20.845 million units, up 13.1% from a year earlier. The wholesale growth rate outpaced retail sales by six percentage points, partly reflecting inventory adjustments across dealerships.

China's indigenous automakers continued to dominate the wholesale market, with sales rising 18% year-on-year to 1.975 million units in September, a 14% increase from August. Mainstream joint ventures sold 539,000 vehicles, roughly flat from a year earlier but up 10% month-on-month. Luxury carmakers reported wholesale sales of 289,000 units, up 4% from a year ago and 11% from August.

The country's passenger vehicle wholesale landscape continued to shift, with several mid-tier manufacturers showing signs of rapid growth. Companies such as SAIC-GM-Wuling, SAIC MOTOR Passenger Vehicle, GAC Honda, and GAC Trumpchi delivered strong month-on-month performance. In September, seven carmakers exceeded 100,000 units in monthly sales—up from six in August and five in the same month last year—collectively accounting for 53% of total market share. Automakers in the 50,000–100,000 unit range represented 21% of the market, while smaller producers with 10,000–50,000 units each held another 21%.

Production also accelerated. China's automakers produced 2.838 million passenger vehicles in September, up 17.2% year-on-year and 15.7% from August. Total output for the first nine months reached 20.78 million units, a 13.9% year-on-year increase. September's production volume surpassed the previous high of 2.44 million units recorded in the same month last year by 400,000 units, underscoring steady momentum in factory activity. Luxury passenger vehicle production grew 7% year-on-year, joint-venture output rose 11%, and Chinese brands led the pace with a 21% increase.

Exports remained a bright spot. Passenger vehicle exports—including both fully assembled and CKD kits—rose 20.7% year-on-year in September to 528,000 units, up 5.7% from August. Between January and September, total exports reached 3.999 million units, representing a 12.5% increase from the same period last year. NEVs made up 40.1% of September's exports, 15 percentage points higher than a year earlier. China's self-owned brands led the charge with 463,000 units shipped overseas, up 27% year-on-year, while exports from joint ventures and luxury marques fell 10.8% over a year earlier to 65,000 units.

China's new energy passenger vehicle (NEPV) output surged to 1.501 million units in September, up 22.9% year-on-year and 17.5% month-on-month. Cumulative NEPV production for the first nine months totaled 10.376 million units, an impressive 32.2% increase from the previous year.

Wholesale sales of NEPVs in September reached 1.5 million units, up 22.4% from a year ago and 15.9% from August. Year-to-date wholesale volume jumped 31.9% over the year-ago period to 10.444 million units, reflecting sustained market expansion.

At the retail level, China's NEPV sales reached 1.296 million units in September, up 15.5% year-on-year and 16.2% month-on-month. For the first three quarters, retail deliveries totaled 8.866 million units, an increase of 24.4%.

Exports of NEPVs continued to surge, with 211,000 units shipped in September—nearly doubling from a year earlier. Month-on-month growth was 3.9%, while cumulative NEPV exports from January to September surged 67.5% year on year to 1.627 million units, underscoring the growing global appetite for Chinese NEVs.