Fuel Car Sales Slide for Ninth Straight Month; NEVs Capture Over 60% Market Share in April

Sales of internal combustion engine (ICE) vehicles have declined year-over-year for nine consecutive months. In April 2026, ICE vehicle sales dropped by 365,000 units compared to the same period last year, as their market share continues to be eroded by new energy vehicles (NEVs). That month, the average price of discounted ICE models was RMB 131,000, with an average discount of 17.2%. Several mainstream models saw price cuts exceeding 20%, yet these reductions had significantly diminished effectiveness in boosting sales. The ICE vehicle market now exhibits a "strong at both ends, weak in the middle" pattern: it still maintains a certain presence in the affordable segment (RMB 50,000–200,000) and the premium segment (above RMB 300,000), while mid-range models are underperforming. Rising fuel prices have increased ownership costs, becoming a key driver pushing consumers toward NEVs. In April 2026, the market penetration rate of NEVs surpassed 60% for the first time—meaning more than six out of every ten new vehicles sold were NEVs. The ICE vehicle market currently lacks hit products to sustain demand, has lost economies of scale, and faces persistent challenges including high costs and stagnant product innovation, resulting in an extremely long-tailed distribution. Although ICE vehicles will likely remain in certain niche segments in the short term, their ongoing displacement by NEVs is now irreversible.