Chinese Autos: Weak gets weaker – August domestic sales -22.7% YoY, EV penetration 63.1%; Export +67.1% YoY

China auto wholesale fell 5.9% YoY in August, with domestic retail volume down 22.7% and export up 67.1%. Tracking mandatory first-time auto insurance volumes, August retail passenger vehicle sales totalled 1.56mn units, down 22.7% YoY, the second-weakest August of the past decade behind only 2019. August retail SAAR reached 19.4mn units, below the estimated normalised annual demand of c.22mn units. Softness was driven by the pull-forward effect of the 2024-25 subsidy programs, a high base, and buyers staying on the sidelines ahead of new model launches; barring further policy stimulus, the report sees limited catalysts for a meaningful domestic recovery before November-December. August EV penetration reached 63.1%, with BEVs at 44.2% and PHEVs at 18.9%;