Passenger Car Average Price Rises to RMB 186,000 in January 2026 as Sales Drop Sharply

Cui Dongshu, Secretary-General of the China Passenger Car Association (CPCA), noted that in January 2026, the average transaction price of passenger vehicles reached RMB 186,000, up RMB 15,000 from 2025, yet sales volumes declined significantly. In recent years, the average vehicle price has fluctuated continuously due to shifts in product mix and sales dynamics: it stood at RMB 151,000 in 2019, rose to RMB 183,000 in 2023, edged up slightly to RMB 184,000 in 2024, and then dropped to RMB 170,000 in 2025. The rebound in early 2026 was primarily driven by the shrinking market for entry-level and mid-range fuel-powered vehicles, while demand for premium fuel-powered models remained relatively stable, thereby pushing up the overall average price. Meanwhile, the average price of new energy vehicles (NEVs) has declined steadily from RMB 184,000 in 2023 to RMB 160,000 in 2025, but rebounded sharply to RMB 195,000 in January 2026—a reflection of structural changes caused by a sharp drop in sales of A00-segment electric vehicles. With the expiration of NEV purchase tax exemptions and rising technical requirements, short-range, high-energy-consumption models now face mounting pressure to undergo redesigns, placing further strain on market growth in 2026.