China's passenger car market continued its downturn in early October, with retail sales dropping 24% year-on-year in the first 11 days, according to the China Passenger Car Association (CPCA). The data, reported by Chinese outlet Gasgoo, shows that from October 1 to 11, retail sales totaled 459,000 units, down 24% from the same period last year but up 7% from the previous month.
Wholesale volumes also weakened, with manufacturers shipping 385,000 units during the period, an 18% decline year-on-year and a 15% drop month-on-month. Cumulative retail sales for the year through October 11 reached 13.793 million units, down 22% from the same period in 2025, while wholesale volumes totaled 20.122 million units, a 6% decrease.
New energy vehicles show resilience
The new energy vehicle (NEV) segment proved more resilient. Retail sales of NEVs, which include battery-electric vehicles (BEVs), plug-in hybrids (PHEVs), and range-extenders (EREVs), reached 281,000 units in the first 11 days of October, down 13% year-on-year but only 7% lower month-on-month. Wholesale NEV shipments rose 6% year-on-year to 301,000 units, though they fell 11% from September.
NEV penetration rates hit record highs for the period: retail penetration reached 61.2%, while wholesale penetration climbed to 78.1%. This indicates that nearly two-thirds of all passenger cars sold at retail in China are now electrified.
Weekly data shows a recovery in the second week of October. In the first week, daily average retail sales were 33,000 units, down 25% year-on-year and 10% month-on-month. In the second week, daily average retail sales rose to 58,000 units, with the year-on-year decline narrowing to 22% and a 32% month-on-month increase. Wholesale followed a similar pattern, with daily averages recovering from 21,000 units in week one to 60,000 units in week two.
Market outlook
The CPCA noted that the Mid-Autumn Festival fell in late September this year, giving October more effective selling days in the traditional "golden September, silver October" season. However, persistently high international oil prices have raised fuel costs, dampening demand for gasoline cars. First-time buyers are hesitant, and the market is increasingly relying on replacement purchases from existing owners, according to the association.
The association attributed the moderate recovery in October sales to National Day auto shows, local government subsidies, and automakers' seasonal promotions. Despite the overall decline, the NEV segment's resilience and rising penetration suggest a structural shift in consumer preference toward electrified vehicles.
