China's car market, traditionally in its peak 'Golden September' sales season, delivered a starkly divided picture this year. Retail sales of passenger cars fell to 1.69 million units in September, a year-on-year drop of nearly 25%, one of the steepest declines for the season in recent years. Meanwhile, new energy vehicles (NEVs) reached a penetration rate of 65.7%—meaning nearly two out of every three cars sold were electrified, according to PCauto.
Top sellers: BYD leads, Geely and Chery tie for third
BYD remained the undisputed leader with 463,600 vehicles sold in September. Domestic deliveries hit 280,000 units, a new monthly high for the year, while exports surged 154% year-on-year to 180,000 units. The home market remains the foundation, but exports are now the real growth engine.
SAIC Motor sold 406,000 units in September, a slight year-on-year decline, but its cumulative sales for the first nine months reached 3.16 million units, keeping it China's sales champion. Its MG brand continued to perform well, and its self-owned brands have now grown for nine consecutive months, accounting for over 70% of total sales.
The battle for third place was razor-thin: Chery sold 292,300 units in September, just 100 more than Geely's 292,200. Chery's strength lies in exports, with 207,800 units shipped overseas—nearly 70% of its total. Geely, meanwhile, balanced domestic and overseas sales, with NEV penetration reaching 65%. Its Zeekr brand alone contributed 37,200 units, up 103.85% year-on-year, and exports rose 162% to 106,700 units.
Great Wall Motor (GWM) lagged, with September sales of 114,900 units, down 14% year-on-year. All three of its main brands—Haval, Tank, and Wey—saw declines, signaling a clear loss of momentum.
Startups diverge: Leapmotor soars, Li Auto stumbles
Among the new forces, Leapmotor delivered 105,700 units in September, up 59% year-on-year, marking its third consecutive month above 100,000. Xpeng delivered 41,300 units, while Xiaomi broke the 40,000-unit mark for the first time, thanks to its new extended-range models (EREV, which use a small engine to charge the battery) that surpassed 10,000 deliveries within 20 days of launch. This marks Xiaomi's entry into the EREV segment after focusing on pure electrics.
The second tier was tightly contested: Huawei's Harmony Intelligent Mobility Alliance, Nio, and Zeekr all clustered around 37,000 units. Li Auto was the surprise laggard, delivering just 31,800 units in September, down both month-on-month and year-on-year, despite a rebound in August.
Industry-wide pressures: thin margins and trade barriers
The broader industry faces severe margin compression. From January to August, the auto industry's profit margin fell to just 3.6%, with total profits down 16% year-on-year. Dealer inventory warning index remained above the red line, and over half of dealers reported a quieter-than-usual 'Golden September and Silver October' season.
Exports have become a lifeline as the domestic market plateaus. However, overseas expansion is meeting rising trade barriers and local competition. A potential year-end rush could come from policy changes on NEV purchase tax in the fourth quarter, but the overall outlook remains challenging. As PCauto notes, the market is no longer about who grows fastest, but who can survive longest in a low-profit environment.
