(Yicai Global) Oct. 12 -- September recorded a slower-than-expected monthly sales growth, so the overall prices in the Chinese auto market will drop this month, making October the best month to buy a car this year, according to the China Passenger Car Association.

Carmakers continued to sell autos at discounted prices to make up for the sluggish sales caused by the Covid-19 epidemic earlier this year in September, making October the best time to buy a car, the CPCA said in its latest report.

Retail sales of passenger cars in China in September, the traditional peak season for auto sales, totaled 1.9 million units, up 21.5 percent from a year earlier and 2.8 percent from August, the lowest monthly increase in 20 years for the same period, data from the CPCA showed.

The low growth rate in September is due to the lack of promotional campaigns in some regions because of recurring outbreaks, CPCA Secretary-General Cui Dongshu said.

The implementation of purchase policy cuts also contributed to the decrease in auto prices. With them, potential buyers are paying greater attention to the market, the CPCA noted.

On June 1, China implemented a preferential car purchase policy that halved the vehicle purchase tax on passenger cars priced at no more than CNY300,000 (USD41,800) with engine displacements below two liters to 5 percent. The policy, which is expected to cut CNY60 billion (USD8.4 billion) worth of taxes, will be valid until the end of the year.

About 3.6 million vehicles benefited from this policy from June to August, with a total tax reduction of CNY23 billion, according to data from the State Taxation Administration.

Although the overall performance was below expectation, new energy vehicle sales maintained a high growth rate. Some 611,000 new energy passenger vehicles were sold at retail in September, up 82.9 percent from the same period a year ago and 14.7 percent from August. NEV sales accounted for 31.8 percent of the total last month, up 11 percentage points from September last year, CPCA data showed.

China will also continue to implement policies to support the new energy industry. The Ministry of Finance announced in late September that it would extend the purchase tax exemption for NEVs for the third time since its implementation in 2014 to the end of next year.

Editors: Dou Shicong, Futura Costaglione