Even pickups are taking a hit, making it harder for the overall market to recover anytime soon, our Shanghai correspondent writes.

"The used-vehicle market has entered a phase of adjustment," China's dealers association said.

The move will enable new dealerships to make profits with lower upfront investment and better control of operating costs, said Dongfeng Motor Group, the French brands' Chinese partner.

The 3.3 percent September increase marked the third gain in four months following a rough start to the year.

Among the three major Japanese brands in China, only Honda maintained solid sales growth last month while deliveries barely changed at Toyota and fell at Nissan. Honda’s September sales rose 4 percent to 138,056, led by the Accord and Civic.  

China's new-vehicle market has contracted for the 15th straight month, with sales declining 5.2 percent from a year earlier to 2.27 million in September, as the nation’s weakening economy continues to weigh on light vehicle demand. 

The Chinese government will phase out subsidies for all EVs -- including fuel cell vehicles -- by the end of 2021, according to China’s ministry of finance.

Sales at Great Wall Motor, China’s largest light-truck maker, have stayed robust, while most of the other major domestic Chinese carmakers continue to report lower deliveries. 

China's dealerships have been devastated by a slump in sales and pressure from tougher emissions standards.

The unexpected, extended downturn in China’s new-vehicle market poses grave threats to the survival of many small domestic brands. It has also sent General Motors to the aid of a key volume brand it created nine years ago under a light-vehicle joint venture.

Two luxury brands -- Mercedes-Benz and Lexus -- matched Volvo in reporting double-digit sales increases in China last month, while Audi deliveries dropped, even as the broader market continues to cool. 

Nio’s third-quarter deliveries jumped 35 percent to 4,799, exceeding a company target, behind sales of the electric vehicle startup’s second product, the five-seat Nio ES6 crossover, which went on sale in June.

Sales at the largest domestic carmaker, Geely Automobile Holdings, and China’s No. 1 electrified vehicle manufacturer, BYD Co., fell again in September, amid an ongoing decline in volume across the country's auto industry. 

Under an agreement with Autoliv, one of the world’s top airbag and seatbelt makers, the two companies will establish a North America road safety research lab in the north China city of Baoding. The announcement by Great Wall, China’s largest light-truck maker, signals another step into a key market.

Amid a cooler market, Mazda Motor Corp.'s China sales are on track to decline for the second straight year after September volume slipped 9 percent to 20,619, marking the brand's 17th straight month of year-over-year declines.