The China Passenger Car Association reported that new energy passenger vehicle retail sales reached 1.084 million units in September 2026, with the retail penetration rate climbing to 67.0%, a new record high.
On the production and sales side, the China Association of Automobile Manufacturers reported that September NEV production and sales reached 1.814 million and 1.823 million units, up 12.2% and 13.6% year on year respectively. The monthly share of new vehicle sales taken by NEVs reached 61.6%, staying above 60% for the third consecutive month.
For the first nine months of the year, NEV production and sales reached 12.483 million and 12.472 million units, growth of 11% and 11.1%. NEVs accounted for 53.6% of total new vehicle sales in the domestic market.
Exports remain a key driver. China's total vehicle exports reached 8.205 million units in the first nine months, up 65.8%, of which NEV exports made up 4.006 million units, or 48.82% of total vehicle exports.
Market analysts described the current pattern as fuel vehicles shrinking while NEVs show resilience, with persistently high oil prices accelerating the substitution of combustion engines by electric powertrains. Falling lithium carbonate prices are expected to further reduce battery costs and support margin repair among battery and vehicle makers further down the chain.
CAAM officials said the automotive industry is expected to maintain stable operation in the fourth quarter.
Source: China Passenger Car Association / CAAM / Securities Times
