Chinese electric-vehicle makers recorded subdued September sales growth, pointing to weakening demand in the world's largest auto market. BYD, the leading new-energy vehicle manufacturer, sold 463,561 units in September, its strongest month so far in 2026. However, year-over-year sales growth slowed to 17% from 18% in August and 22% in July, an underwhelming result given September is the traditional peak season.
Zhejiang Leapmotor Technology had a similar showing, with deliveries rising 59% to 105,656 units, decelerating from August's 81% surge. The performance was mixed among China's top emerging EV makers. NIO's sales rose 7.7% to 37,408 units, a slowdown from August's 14.5% increase, while both XPeng and Li Auto recorded weaker sales, reversing growth in the previous month.
XPeng's September sales fell nearly 1% to 41,256 units, while Li Auto's deliveries dropped 6.3% to 31,817 units. Geely Automobile reported monthly sales of 292,168 units, up 7% from a year earlier. Xiaomi said deliveries exceeded 40,000 units in September.
Nomura analysts noted weaker-than-expected domestic demand during the peak season, implying no seasonal uplift to sales. The industry has started to show signs of consolidation. Earlier this week, Guangzhou Automobile Group said it would acquire a 50% stake in FAW Toyota from FAW Group.
Geely and NIO also reached a battery swapping and charging partnership this week. Nomura reckons the industry has entered the knockout stage this year. Only players with high-quality development can survive.
BYD's shares were 2.6% lower in Hong Kong afternoon trading. Li Auto lost 5.2% and XPeng was down 4.5%. Great Wall Motor shed 1.5% and Leapmotor declined 0.7%.
Xiaomi dropped 4.6%. Geely Automobile and NIO were among the few sector gainers, rising 1.2% and 1.3%, respectively.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing