In early-to-mid October, CAAM and CPCA successively released relevant data on China's auto market for September 2026. CAAM noted that in the first three quarters, China's auto production and sales edged down slightly, with the market overall showing a "cold at home, hot abroad" operating trend. Due to multiple factors, the domestic auto market remained under pressure and has yet to see effective improvement; despite a complex and challenging external environment, exports continued to maintain high-speed growth, demonstrating strong resilience......SMM has compiled the relevant data on the September auto market for readers' reference.
Automobiles
CAAM: September auto production and sales continued to grow MoM, but declined YoY
In September, auto production and sales reached 2.99 million and 2.956 million units, respectively, up 11.4% and 9% MoM, respectively, and down 8.7% and 8.4% YoY, respectively. In January-September, auto production and sales totaled 23.246 million and 23.271 million units, respectively, both down 4.5% YoY.
CAAM: September NEV production and sales both rose YoY; NEV sales in the first three quarters reached 53.6% of total auto sales
In September, NEV production and sales reached 1.814 million and 1.823 million units, respectively, up 12.2% and 13.6% YoY, respectively. NEV sales accounted for 61.6% of total new vehicle sales. In January-September, NEV production and sales totaled 12.483 million and 12.472 million units, respectively, up 11% and 11.1% YoY, respectively, with NEV sales reaching 53.6% of total new vehicle sales.
CAAM: September auto exports continued to surge; NEV export share exceeded 50% for four consecutive months
In September, auto exports reached 1.053 million units, up 4.2% MoM and 61.4% YoY; in January-September, auto exports totaled 8.205 million units, up 65.8% YoY.
In September, NEV exports reached 571,000 units, up 8.6% MoM and 1.6x YoY; exports of traditional fuel vehicles reached 482,000 units, down 0.6% MoM but up 12% YoY. In January-September, NEV exports totaled 4.006 million units, up 1.3x YoY; exports of traditional fuel vehicles reached 4.2 million units, up 31.6% YoY.
Regarding the auto market in the first three quarters, CAAM stated that China's auto production and sales edged down slightly in the first three quarters, with the market overall showing a "cold at home, hot abroad" operating trend. Due to multiple factors, China’s auto market remained under sustained pressure without effective improvement. Despite a complex and challenging external environment, exports continued to grow at a rapid pace, showing strong resilience. New momentum in China continued to be released, with the share of NEV sales steadily rising.
The CPCA also released September passenger vehicle market data. In September 2026, China’s passenger vehicle retail sales reached 1.618 million units, down 28.0% YoY and up 5.0% MoM. January-September cumulative passenger vehicle retail sales reached 13.334 million units, down 21.7% YoY. The CPCA noted that the most prominent feature of the September auto market was “underperformance in the peak season,” with the traditional “September peak season” falling far short of expectations. In previous years, the September peak season featured broad-based gains with both first-time purchases and replacement demand released together. This year, it was a zero-sum game amid existing demand, with internal combustion engine vehicle demand continuing to shrink sharply. September became a month with an unusually large decline in auto retail sales, driven by a combination of factors. First, the Mid-Autumn Festival holiday shifted to late September, and sales weakened notably during that week. Second, the expiration of subsidies in some provinces in September last year triggered a rush to claim subsidies, creating a high comparison base. Third, persistently high oil prices continued to curb internal combustion engine vehicle consumption. Since late September, cumulative gasoline prices have been raised by 2,375 yuan/mt this year, and willingness to buy internal combustion engine vehicles has continued to decline, while the NEV retail penetration rate has climbed to a high of 67%, accelerating the shift from oil-powered vehicles to electric vehicles. Fourth, surging AI-driven memory and chip prices and tight supply led to slower growth in new NEV model launches recently. These were the combined result of multiple factors.
For passenger NEVs, September passenger NEV production reached 1.655 million units, up 9.8% YoY and up 8.3% MoM. January-September cumulative passenger NEV production reached 11.413 million units, up 9.7% YoY. September passenger NEV retail sales reached 1.084 million units, down 16.7% YoY and up 7.8% MoM. January-September passenger NEV retail sales reached 7.758 million units, down 12.8% YoY. September conventional internal combustion engine passenger vehicle retail sales reached 530,000 units, down 43% YoY and down 0.3% MoM. Among them, conventional hybrid vehicle sales rose 25% YoY and 19% MoM.
For NEV exports, CPCA data showed thatSeptember passenger NEV exports reached 558,000 units, up 163.5% YoY and up 7.7% MoM.They accounted for 60.8% of passenger vehicle exports, up 21 percentage points compared to the same period last year. Among them, pure electric vehicles accounted for 60.5% of NEV exports (66.2% in the same period last year). As the core focus, A00 and A0 class pure electric vehicles accounted for 57.9% of pure electric vehicle exports (49% in the same period last year). With the emergence of China's NEV scale advantages and the expansion of market demand, Chinese-made NEV brand products are increasingly going global, with their recognition outside China continuing to rise. Among them, narrow plug-in hybrids accounted for 34.2% of NEV exports (31.4% in the same period last year), and extended-range vehicles accounted for 5.3% of NEV exports (2.4% in the same period last year). Although there has been some external interference from other countries recently, the number of domestic narrow plug-in hybrid exports to developing countries is growing rapidly, with a bright outlook ahead.
Overall, the September passenger vehicle market showed five distinct characteristics: First, total volume was under deep YoY pressure, with MoM recovery but limited strength, and structural divergence was magnified to the extreme. "Accelerating shrinkage of internal combustion engine vehicles and resilient NEV leadership" became the main market theme, with high oil prices continuing to accelerate the pace of "oil-to-electric substitution." Second, internal combustion engine vehicles contracted across the board, with domestic retail sales of pure internal combustion engine passenger vehicles nearly halving, while conventional hybrid models were relatively resilient. Third, the NEV penetration rate continued to break new highs. In September, the NEV retail penetration rate climbed to 67.0%, and the wholesale penetration rate reached 65.4%, both hitting record highs, but the YoY growth rate slowed significantly compared with the earlier period. Fourth, exports surpassed domestic demand to become a core focus for some automakers, with exports effectively stabilizing automakers' wholesale volumes and profits. Some automakers had export shares exceeding 50%, and producers with exports accounting for 70% of their total volume increased rapidly. Export sales became the core driving force boosting automaker growth. Fifth, industry inventory remained sluggish, with high oil prices significantly impacting internal combustion engine vehicles. Dealers became more cautious about new vehicle purchases, and the vast majority of dealers believed that the September-October peak season effect was clearly weaker than in previous years, leaving dealers under great survival pressure and lacking confidence.However, the current auto market downturn is a phased phenomenon caused by short-term policy disruptions combined with a high base, rather than a peak in the fundamentals of automobile popularization. The "top-heavy" characteristic of high penetration in large cities and weak penetration in counties and townships is particularly evident, and the blue ocean of first-time purchase demand in lower-tier counties remains vast.
Leap Motor delivered over 100,000 units for three consecutive months; BYD's September NEV sales hit a new high for the year
During the National Day holiday, several new energy automakers released their September sales/delivery data. Leap Motor's deliveries once again exceeded 100,000 units, reaching the 100,000-unit sales scale for three consecutive months. How did other automakers perform?
Leap Motor:
Leap Motor delivered 105,656 new vehicles in September, up 58.51% YoY, continuing to lead the delivery rankings among new energy automakers while also ranking among the top three NEV brands in China and the top four NEV brands globally. Meanwhile, Leap Motor accelerated its globalization: In January-September 2026, cumulative overseas exports exceeded 150,000 units, achieving its 2026 overseas export target ahead of schedule. As of the end of September 2026, Leap Motor's cumulative global deliveries surpassed 1.8 million units.
XPeng Motors:
XPeng Motors announced its September delivery results. In September, XPeng Group delivered 41,256 new vehicles,up 5% MoM. In Q3, XPeng Group delivered a cumulative 118,390 new vehicles, up 15% QoQ. As of September 30, XPeng's self-operated charging stations reached 4,000+, including 3,510+ self-operated ultra-fast charging stations, with 22,200+ charging piles covering 430+ cities. On September 15, XPeng Group's first global X-Energy megawatt flash charging station officially commenced operations in Hong Kong. Jointly built by XPeng Group and Halo, it is Hong Kong's first megawatt flash charging station open to the public and available to owners of all brands. Over the next three years, XPeng plans to deploy approximately 10,000 ultra-fast charging piles in key international markets.
In the humanoid robot business, on September 8, XPeng Group launched the world's first automated production line for high-level general-purpose humanoid robots. The world's first high-level general-purpose humanoid robot completed automated final assembly and walked off the production line autonomously, marking a key leap from R&D prototyping to line manufacturing. On September 22, XPeng Group held its first robotics supply chain partner conference, attended by supply chain enterprises for core parts such as robot joint modules, actuators, and precision structural components. Currently, XPeng Robotics has signed nomination agreements with supply chain enterprises and is advancing production line scheduling. According to plan, XPeng Robotics is expected to enter mass production by the end of this year and will be the first to deploy in commercial scenarios such as XPeng stores and campuses.
NIO:
NIO released its September delivery data. In September, NIO delivered 37,408 new vehicles,up 7.7% YoY. Of these, the NIO brand delivered 21,318 new vehicles, up 55.3% YoY; the ONVO brand delivered 8,763 new vehicles; and the firefly brand delivered 7,327 new vehicles, up 26.9% YoY.
In the first three quarters of 2026, NIO delivered a cumulative 300,301 new vehicles, up 49.2% YoY, with all three brands achieving record-high deliveries in the first three quarters. Of these, the NIO brand delivered 181,988 new vehicles, up 63.4% YoY, a record high; the ONVO brand delivered 70,191 new vehicles, a record high; and the firefly brand delivered 48,122 new vehicles, up 136.7% YoY, a record high. To date, NIO has cumulatively delivered 1,297,893 new vehicles.
On September 21, the NIO brand completed the delivery of its 1 millionth new vehicle. To date, cumulative new vehicle deliveries have reached 1,011,597 units, and the brand's average transaction price has remained firmly above 400,000 yuan. From January to August, it maintained the top market share in China for new vehicles with a starting price above 400,000 yuan, leading the high-end market with both volume and price rising.
Li Auto:
Li Auto also released its delivery data for September 2026, noting that it delivered 31,817 new vehicles in September 2026. As of September 30, 2026, Li Auto's cumulative deliveries reached 1,833,651 units.
As of September 30, 2026, Li Auto had 485 retail centers across China, covering 160 cities, and 532 after-sales repair centers and authorized service centers, covering 217 cities. Li Auto has put into use 4,188 Li Auto supercharging stations nationwide, with 23,077 charging piles.
Xiaomi Auto:
Xiaomi Auto delivered more than 40,000 units in September. Lei Jun, chairman of Xiaomi Group, said that Xiaomi Pengcheng delivered more than 10,000 units in its first month.
BYD:
As for BYD, the "top player" in China's EV market, its announcement shows thatthe company sold 463,600 NEVs in September, a new high for the year!The figure was 396,300 units in the same period last year. Cumulative sales from January to September this year reached 3.1316 million units, down 3.94% YoY. Cumulative NEV sales exceeded 18.2 million units, including 273,100 pure EVs sold in September, up 33.21% YoY, and 183,600 plug-in hybrid vehicles, down 2.36% YoY. In September, NEV exports totaled 180,700 units.
Cui Dongshu, head of the China Passenger Car Association, said that in September, the passenger car market entered the traditional peak sales season. Local consumption-promotion policies and automaker sales promotions continued, and new models boosted foot traffic, supporting market performance. However, the high base in September last year dampened the rebound effect this September.
Looking ahead to the passenger car market in October, the China Passenger Car Association said there are 18 working days in October this year, the same as the same period last year. Since the Mid-Autumn Festival fell in late September, October has a longer effective sales period within the traditional September-October peak season, and end-user foot traffic is expected to continue recovering. The core feature of the macro environment is weak economic recovery, with policies focused mainly on replacement-driven stimulus, and the market is in a stock-game phase. Persistently high international oil prices keep vehicle operating costs elevated, and consumption of internal combustion engine vehicles is unexpectedly sluggish. Short-term support comes from the National Day auto shows, local subsidies, and automakers' peak-season promotions. Medium and long-term constraints stem from weak consumer income confidence and wait-and-see sentiment caused by price competition. On the consumption side, first-time purchase growth is temporarily hindered, while replacement of existing vehicles has become a key support for stabilizing growth. Car purchase decisions are shifting from a sole focus on purchase price to a comprehensive evaluation of full-lifecycle vehicle costs, residual value, smart features, policy subsidies, and the appeal of new models.
On the policy front, this year's trade-in subsidies continue to gain momentum, with the number of subsidies expected to show a "low first, high later" trend, forming a sharp contrast with the gradual phase-out of subsidies in October last year, which is conducive to stabilizing the auto market. On the export side, trade pressure in the EU market is intensifying, and the slowdown in growth will gradually become evident. Meanwhile, three irreversible trends in the demographic structure—the downward shift in the total number of marriages, the postponement of marriage age, and accelerating aging—are shifting the growth drivers of the auto market from "first-time purchases by newlyweds" to "replacement and additional purchases + NEV upgrades + mobility for the elderly." In terms of consumption characteristics, high oil prices continue to suppress demand for internal combustion engine vehicles, accelerating "oil-to-electric substitution." NEV penetration rate is fluctuating at highs above 65%, and the weight of vehicle usage costs in consumer purchase decisions continues to rise.
The trend toward full electrification in the A-segment market is evident. Under high oil prices, improvements in single-vehicle fast charging technology will effectively boost A-segment EV sales. Replacement demand is squeezing out first-time purchase demand, with "consumption upgrades and downgrades coexisting." Demand for B-segment and above high-end models is robust, but A-segment and A00-segment economy EVs continue to shrink under the influence of complex factors. Recently, some automakers have been actively laying out elderly-friendly products and mobility services, and A0-segment EV sales have gained significant growth.
It is expected that future policies will support the development of economy EVs, encourage smaller vehicle sizes, and provide more subsidies for low-priced cars, so as to promote the release of first-time purchase demand in lower-tier markets and provide structural support for the long-term stable growth of the auto market.
Policy side
On October 12, the Ministry of Finance and another department issued the Announcement on Adjusting Export Tax Rebate Policies for Certain Products, which mentioned that starting from April 1, 2027, the VAT export rebate rate for NEVs will be reduced from 13% to 9%. Starting from April 1, 2027, VAT export rebates for products such as e-cigarette devices and equipment will be canceled. For the above products that are subject to consumption tax, the export consumption tax policy will not be adjusted, and the consumption tax exemption (rebate) policy will continue to apply.
In addition, it is worth mentioning that on October 12, the Ministry of Commerce also released a spokesperson's remarks on the consensus reached in consultations between China and the EU on hybrid vehicles and EVs, which mentioned that regarding hybrid vehicles, both sides emphasized and confirmed three basic principles. First, respect the facts. According to Eurostat data, the EU imported 107,000 hybrid vehicles from China in 2024 and 302,000 in 2025. Both sides have reached an upward arrangement on the basis of 2025, ensuring export space and stable growth for Chinese enterprises, and accommodating the reasonable concerns of both industries based on reality. Second, non-discrimination. No measures will specifically target Chinese products, nor will Chinese enterprises be treated in a discriminatory manner. The quota obtained by China will not be lower than that of any other source of imports to the EU. Third, compliance. Both sides confirmed that the trade arrangement should comply with WTO rules. China reserves all rights under the WTO framework, including recourse to dispute settlement and requests for trade compensation. These three basic principles run through the entire process and serve as a solid foundation for safeguarding the legitimate rights and interests of Chinese enterprises. Regarding EVs, China and the EU achieved a "soft landing" in the anti-subsidy case in January this year, and the EU issued a general guidance document on price undertakings. In this regard, the EU will continue to advance the procedures related to price undertakings for enterprises in the EV case, as well as other review procedures.
On October 10, the Ministry of Industry and Information Technology and three other departments jointly issued a notice on further strengthening the management of innovative design, R&D, testing and verification of automotive products (draft for comments), intending to regulate marketing and promotional activities. Automobile producers shall conduct marketing and promotional activities in a truthful and objective manner, truthfully publicize the usage boundaries, restrictive conditions, and R&D testing and verification of innovative product designs, and shall not make false, exaggerated, or misleading publicity, shall not use scenarios that violate road traffic regulations to promote product functions, shall not induce drivers to neglect their responsibility for safe driving, and shall ensure that consumers correctly understand and use the functions related to innovative design of automotive products.
