Chinese electric-vehicle makers recorded subdued September sales growth that pointed to slowing demand in the world's largest auto market, sending shares lower in Hong Kong.

BYD, the world's leading manufacturer of new-energy vehicles--a term encompassing EVs and plug-in hybrids--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 for China's auto market.

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.

"We observed weaker-than-expected domestic demand and order situation during the traditional peak season, implying no seasonal uplift to sales," Nomura analysts wrote in a note.

Chinese automakers are dealing with weakening demand and oversupply issues after years of rapid expansion and intense competition. The industry has also started to show signs of consolidation in recent months.

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," it said.

Shares of Chinese EV makers fell broadly on Friday as the market returned from a holiday.

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.