China’s automotive market experienced significant shifts in September, with electric vehicles capturing a record 67% market share amid broader market contraction. Overall sales fell to approximately 1.6 million units, representing a 28% decline compared to the same period last year. The dramatic rise in EV penetration was primarily driven by a severe deterioration in traditional internal combustion engine sales, which plummeted 49% year-over-year, while plug-in hybrid sales declined 17%.
Battery electric vehicles accounted for 45% of total sales, with plug-in hybrids contributing an additional 22% to achieve the record EV penetration rate. Year-to-date figures for 2026 show EV market share at 58%, already surpassing the full-year 2025 result of 54%, with pure BEVs alone reaching 39% compared to 33% in the prior year. Industry analysts project the final 2026 EV share could exceed 60%, with BEVs comprising over 40% of sales.
The competitive landscape continues to shift rapidly, with electric models dominating sales rankings. Two Toyota ICE vehicles—the Corolla Cross and RAV4—managed to crack the top 10, marking a notable reversal of recent months when the top 10 was composed entirely of plug-in models. Among the best-selling electric vehicles, Tesla’s Model Y maintained its leading position with 50,359 September deliveries, though this represented a 2% decline versus September 2025. Geely’s Xingyuan ranked second with 44,275 units, while BYD’s Song secured third place with 30,603 registrations, benefiting from a transition to its new Ultra generation featuring advanced technology.
Other strong performers included BYD’s premium brand Fang Cheng Bao with its Ti 7 model recording 27,544 units in September. Industry observers note that competitive intensity in the sub-$25,000 segment has intensified significantly, with new entrants and next-generation models challenging established leaders across multiple segments.
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