China NEV retail slips 3% year-on-year in early September even as share climbs to 71.5%

China's new energy vehicle market opened September on a stronger sequential footing, according to China Passenger Car Association data released Thursday. Passenger NEV retail volume came in at 150,000 units for September 1-6, a 15% jump from the first week of August, though the figure was still 3% below the same stretch a year ago.

New energy models claimed 71.5% of passenger-vehicle retail during the period, up sharply from 61.6% at the start of August. The wholesale side looked even healthier: NEV volume reached 156,000 units, up 2% year-on-year and 20% from a month earlier, translating into a 75.1% wholesale penetration rate that points to the ongoing contribution of exports.

The broader passenger-car market told a weaker story. Retail sales fell 19% year-on-year to 210,000 units in the first six days of the month, leaving year-to-date retail down 21% at 11.926 million units. Year-to-date NEV retail stands at 6.824 million, off 12% from a year earlier, while NEV wholesale has grown 9% to 9.934 million.

The CPCA expects showroom traffic to keep building as the traditional September-October peak season begins, with August's improved manufacturing PMI and stable consumer prices lending support. A stiff year-ago comparison remains a headwind, though: a last-minute buying rush ahead of subsidy expiries in some regions drove September 2025 retail to a record. Exports continue to prop up the industry — August shipments hit 1.05 million units, up 37% year-on-year, bringing the January-August total to 7.45 million, a 51% rise — even as the association flags growing pricing pressure on finished vehicles and rising strain on dealers.