Fuel-Powered Cars Slash Prices Amid EV Disruption—Audi A6L Cuts Up to ¥190,000

On May 22, 2024, the internal combustion engine (ICE) vehicle market witnessed a large-scale price-cutting wave, driven by automakers’ concerted efforts to reduce inventory rather than short-term dealer promotions. The base model of FAW Audi’s A6L C8 is now priced at approximately RMB 260,000, a drop of RMB 190,000 from its original manufacturer’s suggested retail price (MSRP) of RMB 450,000. BMW adjusted prices for 31 models, with over 80% seeing reductions exceeding 10%, some surpassing 20%, and the top-trim variant receiving a maximum direct discount of RMB 301,000. Mercedes-Benz simultaneously lowered prices for key models such as the C-Class and GLC, with individual models seeing discounts of up to RMB 69,000. The price cuts have now spread to joint-venture brands, with Volkswagen, Nissan, Honda, and others offering substantial discounts across their entire ICE vehicle lineups. This round of price reductions is primarily driven by the rapid rise in market share of new energy vehicles (NEVs) and shifting consumer demand. According to data from the China Passenger Car Association (CPCA), NEVs accounted for over 60% of passenger vehicle sales in April 2024. ICE vehicle sales plummeted year-over-year, totaling only 530,000 units that month, with just one ICE model among the top ten best-selling vehicles. Consumer preference for vehicle replacement has also shifted significantly toward NEVs: over 80% of ICE vehicle owners now prioritize NEVs when upgrading, while only 13.3% remain committed to purchasing another ICE vehicle. Additionally, escalating oil prices due to Middle East conflicts have further eroded the cost-effectiveness of ICE vehicles, accelerating the migration toward new energy alternatives.