According to data released by the China Passenger Car Association (CPCA) on September 11, China's passenger car retail sales reached 304,000 units during September 1-7, declining 10% year-on-year compared to the same period last September and dropping 4% from the previous month. Cumulative retail sales for this year totaled 15.069 million units, up 9% year-on-year.
During the same period, nationwide passenger car manufacturer wholesale volume reached 307,000 units, down 5% year-on-year but up 9% month-on-month. Cumulative wholesale volume for this year reached 18.349 million units, representing a 13% year-on-year increase.
New energy vehicle retail sales totaled 181,000 units during September 1-7, declining 3% year-on-year and 1% month-on-month, with a market penetration rate of 59.6%. Cumulative new energy retail sales for this year reached 7.752 million units, up 25% year-on-year. New energy wholesale volume reached 179,000 units during the same period, up 5% year-on-year and 12% month-on-month, with a manufacturer wholesale penetration rate of 58.1%. Cumulative new energy wholesale volume for this year totaled 9.122 million units, up 33% year-on-year.
**September 2025 National Passenger Car Market Retail Performance**
The first week of September saw daily average retail sales of 43,000 units nationwide, down 10% year-on-year and 4% month-on-month. The September car market opened with stable momentum, remaining essentially flat compared to 2023 but weaker than early September 2024 performance.
Due to the national trade-in policy expansion that began in late July 2024, August retail sales exceeded expectations. However, manufacturers' August targets were modest, leading some dealers to shift late August sales to early September for more balanced monthly progress. This resulted in negative growth in early September this year, particularly as some regions implemented trade-in policies with greater consideration for subsidy sustainability, leading to slower sales momentum in certain areas.
The recent Chengdu Auto Show introduced numerous new models, but the current market faces a growing supply-demand imbalance between low passenger car ownership per capita and an excess of high-end models. Many new models feature "523" characteristics - 5 meters in length, nearly 2 meters wide, and nearly 3 meters in wheelbase - but are still in a slow growth phase due to the lack of breakthrough entry-level popular models, resulting in lower-than-expected contribution from new products.
Current local subsidy policies favor high-priced vehicles, with many regions implementing tiered subsidy schemes that disadvantage entry-level car market development and hinder car market penetration in small cities and rural areas, further suppressing market growth rates.
**September 2025 National Passenger Car Manufacturer Wholesale Performance**
The first week of September saw daily average wholesale volume of 44,000 units nationwide, down 5% year-on-year but up 9% month-on-month. Leading automakers are working to maintain relatively stable market prices through anti-involution efforts while ensuring gradual improvement in supply chain funding and reducing dealer inventory pressure. However, profitability pressure remains significant, making manufacturers more cautious about domestic sales growth.
China's export performance remains strong, with the automotive export situation improving since the second quarter and good growth in some overseas markets. Self-owned new energy brands' overseas market share rose to 16% in July, while reduced inventory pressure in Russia has driven continued export growth.
As Chinese plug-in hybrid and conventional hybrid vehicle exports intensify, domestic brands' impact on international brands in overseas markets will become increasingly evident. Based on nearly 20 years of experience with strong export growth in Chinese durable consumer goods, the development of new domestic vehicles and overseas marketing systems will continue to strengthen Chinese domestic brands' international market presence.
**August 2025 Passenger Car Market Price Reduction and Promotion Analysis**
The passenger car industry's promotions and price reductions returned to rationality in 2025, with significantly improved market order. The scale of 129 new car price reductions from January to August 2025 was relatively moderate. Current price competition mainly involves new cars directly breaking through previous price floors rather than the previous model of adding features without reducing prices.
Six models saw direct price cuts in August, while new cars improved cost-effectiveness through feature upgrades and price reductions. August saw 23 models with price reductions, five more than July, including 5 gasoline vehicles, 1 hybrid gasoline vehicle, 2 plug-in hybrids, 1 extended-range vehicle, and 14 pure electric vehicles.
From January to August 2025, new energy vehicles' average price reduction reached 21,000 yuan, representing a 10.9% decline. In August, new energy vehicles' average price reduction was 19,000 yuan, representing a relatively low 7.3% decline.
The national trade-in policy has shown outstanding results, with market sales growth and significantly reduced price-cutting practices. Industry operating pressure has improved, with automotive industry profit margins reaching a high of 6.9% in June, reflecting positive performance from industry scale expansion and stabilized promotional pricing.
**August 2025 National Passenger Car Market Price Segment Analysis**
According to CPCA data, August national passenger car retail sales reached 2 million units, up 4.6% year-on-year and 8.2% month-on-month. Cumulative retail sales for this year totaled 14.74 million units, up 9.5% year-on-year.
This year's domestic car market retail showed a "low-early, high-middle, stable-late" trend. The average passenger car price from January to August 2025 was 170,000 yuan, down 7,000 yuan from 2024's average, with August's average price at 169,000 yuan, flat year-on-year.
While conventional gasoline car prices continued rising previously, market contraction was obvious in the mid-to-low-end segment, with slower contraction in the high-end, causing average prices to rise from 150,000 yuan in 2019 to 183,000 yuan in 2023. With faster contraction of high-end gasoline cars in 2025, the average price dropped to 170,000 yuan from January to August and 169,000 yuan in August, with gasoline car purchasing groups gradually stabilizing.
New energy vehicle average prices have been declining recently, from 184,000 yuan in 2023 to 171,000 yuan in 2024 and 160,000 yuan in 2025, with August 2025 at 159,000 yuan, showing significant price declines and reflecting active new energy vehicle consumption.
**Listed Auto Companies' First-Half Performance Analysis**
Listed automotive companies' first-half 2025 business performance reports show that some domestic and international listed automotive companies achieved over 11% revenue growth, while net profits declined and international automakers' prosperity significantly decreased.
According to domestic listed automotive companies' revenue classification, state-owned enterprises achieved zero growth, private enterprises achieved 23% growth, and international automakers declined 5%.
Among growth categories, comparing new energy producers, comprehensive companies, and international automakers, domestic new energy automakers grew 25% overall, domestic comprehensive automakers had zero growth, and international automakers declined 5%.
Industry accounts receivable turnover averaged 36 days. Private enterprises averaged 19 days in accounts receivable, state-owned enterprises 48 days, and international automakers 63 days. For accounts payable, the overall calculation was 92 days, with state-owned enterprises at 97 days, private enterprises at 108 days, and international automakers at 45 days.
Comparing new energy and traditional automakers, new energy companies had 112 days in accounts payable, domestic comprehensive automakers had 91 days, and international automakers had 38 days.
Auto companies' gross profit reached 321.1 billion yuan in 2025, with gross profit growth at approximately 10%. State-owned enterprises saw negative 20% gross profit growth, private enterprises achieved 37% growth, and international automakers declined 23%.
From listed company performance, Hong Kong-listed automakers achieved 124% gross profit growth, domestic companies declined 3%, and overseas companies declined 10%.
Overall gross profit margin remained around 15%, with state-owned enterprises at 8%, international automakers at 13%, and domestic private enterprises at 19%. Domestic new energy automakers' gross profit margin rose from 19% to 20%, while domestic comprehensive traditional automakers declined from 13% to 12%.
Overall, automotive companies' total expense ratio in 2025 was 9% for state-owned enterprises, 9% for international automakers, and 16% for private enterprises.
From net profit margin performance, auto companies achieved an overall 3% net profit margin in 2025, with state-owned enterprises at 1.5%, private enterprises at 4.2%, and international automakers at 2.1%.
Among luxury car profits, some companies achieved exceptionally high net profit margins, with Ferrari reaching 23%, Yutong Bus Co.,Ltd. at 12%, Xiaomi Auto at 10%, and Great Wall Motor Company Limited at 7%.
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