EVs Outsell Gas Cars for First Time as April NEV Retail Penetration Hits 61.4%

In April, the retail penetration rate of new energy passenger vehicles in China reached 61.4%, meaning that more than six out of every ten newly sold cars were new energy models—marking the first time they have overtaken fuel-powered vehicles in market share. This shift signals a new phase for the automotive distribution industry. Traditional dealerships are now widely grappling with inverted pricing on new vehicles, with over 80% caught in price-inversion challenges. Although after-sales maintenance and service have become their primary revenue source, profit margins in this segment are being squeezed due to the structural differences of new energy vehicles. Amid this profound industry restructuring, leading dealers have adopted divergent strategies: Zhongsheng Holdings is implementing strategic retrenchment, Grand Auto is prioritizing loss containment, and Pang Da Group is intensifying its push into luxury brand channels. Meanwhile, new energy vehicle manufacturers predominantly adopt direct-sales models, further eroding the operating space for traditional dealers. To navigate this channel reshuffling, dealers must move beyond reliance on single-vehicle sales and instead deepen user-centric services while diversifying their revenue streams.