CPCA: September Saw Abnormally Sharp Decline in Retail Sales Amid Multiple Factors

36Kr reports that the China Passenger Car Association (CPCA) stated that the most prominent feature of the car market in September was a weak 'peak season,' with the traditional 'Golden September' falling significantly short. In previous years, 'Golden September' saw broad growth and simultaneous release of first-time and replacement purchases; this year, however, it reflects a zero-sum game under existing inventory constraints, with fuel vehicle demand continuing to shrink sharply. The CPCA attributes the abnormally sharp decline in retail sales in September to multiple overlapping factors: First, the Mid-Autumn Festival was scheduled for late September, causing a noticeable slowdown in sales during that week; second, the withdrawal of subsidies in some provinces last September triggered a rush to claim them, creating a high comparative baseline; third, persistently high oil prices have suppressed fuel vehicle consumption: since the end of September, gasoline prices have risen cumulatively by 2,375 yuan/ton within the year, leading to declining consumer willingness for fuel vehicles, while new energy vehicle retail penetration has climbed to a high of 67%, accelerating the 'fuel-to-electric' substitution; fourth, surging prices and supply constraints in memory chips driven by AI have slowed the introduction of new energy models. These outcomes are the result of multiple factors combined.