2025 Passenger Car Prices Drop to ¥170,000 as EVs Keep Falling

Cui Dongshu, Secretary-General of the Passenger Car Association (PCA), revealed that the average price of passenger vehicles in 2025 was RMB 170,000, down RMB 14,000 from 2024. Specifically, the average price of internal combustion engine (ICE) vehicles declined slightly from RMB 183,000 in 2023 to RMB 182,000 in 2025, primarily due to the rapid contraction of the premium ICE vehicle market. Meanwhile, the average price of new energy vehicles (NEVs) fell continuously from RMB 184,000 in 2023 to RMB 161,000 in 2025, reflecting a clear downward pricing trend. Although the average NEV price rebounded to RMB 179,000 in December 2025, this was largely driven by a sharp drop in sales of A00-segment micro cars, resulting in a structural shift characterized by "declining volume but rising prices." Cui noted that with the impending expiration of NEV purchase tax exemptions and upcoming upgrades to technical standards, certain short-range, high-energy-consumption models are facing pressure to undergo redesigns, which could weigh on market sales growth in 2026.