Volkswagen deliveries fell 14% in the third quarter as China sales slumped 39%

BEIJING - China's domestic car sales continued their decline for the 12th consecutive month, while exports remained a crucial growth driver, as automakers sought overseas markets to mitigate the impact of a sluggish domestic market, according to data released by the China Passenger Car Association on Monday. Passenger vehicle sales dropped 28.1% year-over-year, declining to 1.63 million units in September, a sharper decline from the 23.7% fall in August.

Annual car exports surged 73.2% to 923,000 vehicles last month, up 77.5% from August. However, sales of battery electric vehicles and plug-in hybrids domestically fell 16.7% to 1.08 million units year-over-year, compared to a 10.1% decline in August. The export growth of this segment accelerated to 163.5% from August's 154.7%. Cui Dongshu, secretary-general at CPCA, noted that any restrictions on plug-in hybrid exports are unlikely to significantly impact overall new energy vehicle exports, as pure EVs dominate the sector.

China and the EU have reached a deal that could halve Chinese hybrid vehicle exports to the bloc over four years, though the specific volume limits and terms for shipments above those quotas are still unclear. The weakening domestic sales reflect broader economic challenges, including reduced consumer spending and a prolonged property downturn affecting demand.

Regulators have shifted their focus towards safety and value, proposing rules that would prevent hasty vehicle launches without adequate validation.