New Energy Vehicle Prices Keep Falling; Tax Exemption Changes Pressure Some Models to Redesign

Cui Dongshu, Secretary-General of the China Passenger Car Association (CPCA), noted that due to the impending expiration of the new energy vehicle (NEV) purchase tax exemption policy and upgrades in technical specifications, certain short-range, high-energy-consumption models are now under pressure to undergo redesigns. The average price of NEVs dropped to RMB 161,000 in 2025, a notable decline from RMB 184,000 in 2023. Although it rebounded to RMB 179,000 in December, this reflected a structural shift characterized by "declining sales volume alongside rising prices." Meanwhile, the average price of internal combustion engine (ICE) vehicles fell to RMB 182,000 for the full year of 2025, driven by shrinking demand in the premium segment. After peaking at RMB 183,000 in 2023, the overall average price of passenger vehicles declined to RMB 170,000 in 2025. A sharp drop in December sales of A00-segment electric vehicles further pushed up the monthly average price. Looking ahead to 2026, the market faces mounting pressure on sales growth.