New Cars Drop by Avg. ¥37,000 in January; Both EVs and ICE Vehicles See Over 14% Price Cuts

According to the latest data from Cui Dongshu, Secretary-General of the China Passenger Car Association (CPCA), domestic passenger vehicle manufacturers significantly intensified price cuts in January 2026. The average pre-discount price of discounted models was RMB 248,000, with an average reduction of RMB 37,000, representing an overall discount rate of 14.9%—up 2.5 percentage points month-over-month and a slight increase of 0.4 percentage points year-over-year. Among these, new energy vehicles (NEVs) had an average pre-discount price of RMB 253,000, with an average price cut of RMB 38,000, resulting in a discount rate of 14.8%. Conventional fuel-powered vehicles saw an average pre-discount price of RMB 238,000, with an average reduction of RMB 36,000, translating to a slightly higher discount rate of 15%. The data clearly indicates a pronounced downward pricing trend for both NEVs and fuel vehicles, reflecting intensifying market competition.