AUTO sales in China increased 4.7% in September from the same month a year ago, official data showed, boosted by more people buying discounted and new models ahead of key holidays.

Passenger vehicle sales totaled 2.04 million units in September, the China Passenger Car Association (CPCA) said yesterday. The year-on-year rate of increase was higher than the 2.2% year-on-year rise in August, the data showed.

New energy vehicle (NEV) sales were up 22.1% in September from a year earlier, making up 36.6% of total car sales, and helping several local brands set record high sales. NEV sales growth slowed from a 34.5% jump in August.

September is traditionally a bumper month for car sales in China, partly because many people go on a shopping spree ahead of the Mid-Autumn Festival and National Day holidays.

CPCA secretary general Cui Dongshu said the downturn in the property market bode well for car sales, as many people were now choosing to buy cars instead of investing in housing.

For the first nine months, sales in the world’s largest car market rose 2.1% to 15.41 million units.

Overseas markets remain an important growth area, although an European Union probe into China-made electric cars may put a damper on exports.

Exports grew 50% in September year on year following a 31% gain in August, the data showed. Tesla exported 30,566 China-made vehicles in September, up 57% from 19,465 in August.

Tesla, which pioneered a price war that has engulfed more than 40 brands in China, saw its market share in China’s electric car segment in the third quarter shrink to 9.89%, compared with 12.98% in the second and 9.93% a year ago.

The U.S. giant undershot estimates for its third-quarter global deliveries, as planned factory upgrades to unveil a revamped version of the Model 3 roiled production.

BYD Co. sold a record 287,454 NEVs in September. Electric car startup Li Auto also set a new monthly record with 36,060 vehicles delivered last month, a surge of 212.7% year on year.

The European Commission last month announced an investigation into Chinese electric vehicles. The move may lead to tariffs close to the 27.5% level already imposed by the United States on Chinese electric vehicles, Bloomberg reported.

“We strongly oppose what the European Commission commented on Chinese car exports,” CPCA’s Cui said.

The investigation is riddled with “double standards” and a hindrance for the rise of Chinese technologies, which violates the World Trade Organization fairness rules, he added. (SD-Agencies)