CPCA: September became a month with an unusually prominent decline in retail sales in this round of the auto market, caused by a combination of multiple factors.

The China Passenger Car Association (CPCA) stated in a post that the most prominent feature of the September auto market was a "lackluster peak season," with the traditional "Golden September" falling significantly short of expectations. In previous years, "Golden September" saw broad market gains, with both first-time purchases and trade-ins being released together; this year, however, it has been a zero-sum game under stock competition, with demand for fuel vehicles continuing to shrink sharply. September became a month with an exceptionally prominent decline in retail sales in this round of the auto market, driven by a combination of multiple factors: First, the Mid-Autumn Festival holiday was moved up to late September, and sales during the Mid-Autumn week weakened noticeably; second, some provinces phased out subsidies in September last year, triggering a rush to grab subsidies that created a high comparison base; third, high oil prices continued to suppress fuel vehicle consumption: since the end of September, gasoline prices have cumulatively risen by 2,375 yuan/ton for the year, and willingness to consume fuel vehicles has continued to decline, while the retail penetration rate of new energy vehicles has climbed to a high of 67%, with "oil-to-electric substitution" accelerating; fourth, AI-driven surges in memory and chip prices and supply tightness have slowed the incremental launch of new energy products. This is the result of multiple factors working together.