China retail passenger vehicle sales fall 24 percent in September

Retail passenger vehicle sales in China dropped 24 percent year-over-year in September 2026, reaching approximately 1.7 million units, according to preliminary industry data published on October 10, 2026, by the China Passenger Car Association.

The year-over-year decline recorded in September reflects a broader downward movement in retail automotive sales across the country throughout 2026. Year-to-date retail passenger vehicle sales dropped 21 percent compared to the prior year, reaching roughly 13.4 million units in total sales volume.

Despite the steep annual fall, retail passenger car sales showed positive short-term momentum on a monthly basis. Total retail sales posted a 10 percent month-over-month increase in September 2026 compared to the total sales figures logged in August 2026.

Industry figures indicated that the month-over-month rise was driven by a combination of government policy measures and seasonal sales activity. The monthly rebound in auto purchases was supported by municipal mortgage and consumer subsidies introduced during the traditional autumn auto season.

New energy vehicle market share

Strong adoption of new energy vehicles served as the main engine for the month-over-month growth in retail vehicle purchases. New energy vehicles comprised 67 percent of all retail passenger car sales across China during September 2026.

The expansion in new energy vehicle sales helped boost total retail transaction numbers higher than the figures seen in August, according to the trade report published by GuruFocus.

Valuation metrics for market leader BYD

The auto market data release also coincided with valuation figures for key industry players, including domestic market leader BYD Co Ltd. Following the report, BYD Co Ltd maintained a Price-to-Sales ratio of 1.0.

A Price-to-Sales ratio of 1.0 is below BYD Co Ltd's historical median Price-to-Sales ratio of 1.3x. At the time of the preliminary data release on October 10, BYD Co Ltd held a total market capitalization standing at $115.60 billion.

The China Passenger Car Association's preliminary report confirms that while total year-to-date auto retail volume remains down 21 percent, monthly vehicle demand saw recovery during the autumn sales period, led by municipal incentives and high adoption of new energy vehicles.