China NEV retail sales dip 9% in early September but still outperform slumping auto market

• NEV retail sales totaled 596,000 from September 1-20, accounting for 67.9% of passenger car retail sales.
• Overall passenger car retail sales fell 22% over the same period as sales of gasoline-powered vehicles continued to slump.

China's retail sales of new energy vehicles (NEVs) fell in the first 20 days of September but continued to outperform the broader market as gasoline-powered vehicles suffered a steeper decline.

Retail sales of passenger NEVs totaled 596,000 from September 1-20, down 9% year-on-year but up 14% from the same period last month, according to data released Wednesday by the China Passenger Car Association (CPCA).

Year-to-date retail sales of passenger NEVs came in at 7.27 million units, down 12% year-on-year.

NEVs accounted for 67.9% of passenger car retail sales from September 1-20.

Over the same period, wholesale NEV sales by China's passenger car manufacturers totaled 740,000, up 8% year-on-year and 25% from the same period last month.

Year-to-date wholesale NEV sales were 10.518 million, up 9% year-on-year.

NEVs accounted for 73.9% of passenger car wholesale sales from September 1-20.

The broader auto market remained under pressure. China's passenger car retail sales totaled 878,000 from September 1-20, down 22% year-on-year but up 8% from the same period last month.

Year-to-date passenger car retail sales reached 12.59 million, down 21% year-on-year.

In the first week of September, from September 1-6, daily retail sales averaged 35,050, down 19% year-on-year and 1% from the same period in August.

In the second week, from September 7-13, daily retail sales averaged 43,515, down 26% year-on-year but up 8% from the same period in August.

In the third week, from September 14-20, daily retail sales averaged 51,824, down 20% year-on-year but up 13% from the same period in August.

Total wholesale sales by passenger car manufacturers reached 1.001 million from September 1-20, down 19% year-on-year but up 21% from the same period last month.

Year-to-date passenger car wholesale sales reached 18.18 million, down 6% year-on-year.

From September 1-6, daily wholesale sales averaged 34,532, down 21% year-on-year but up 13% from the same period last month.

From September 7-13, daily wholesale sales averaged 49,025, down 23% year-on-year but up 28% from the same period last month.

From September 14-20, daily wholesale sales averaged 64,398, down 14% year-on-year but up 20% from the same period last month.

Conventional fuel-powered vehicles were the main drag. Nationwide production of light vehicles powered solely by internal combustion engines totaled 330,000 in the first 3 weeks of September, down 52% year-on-year despite a 47% increase from the same period last month.

Combined production of conventional hybrids and plug-in hybrids totaled 265,000 over the period, down 23% year-on-year but up 21% from the same period last month.

This year's "Golden September" is no longer delivering broad-based gains across the market, the CPCA said.

In previous years, demand from first-time buyers and those replacing their vehicles rose together, benefiting both gasoline-powered vehicles and NEVs. This year, automakers are competing for a limited pool of demand, with gains concentrated almost entirely in NEVs, the CPCA noted.