April ICE Vehicle Sales Plunge 37.2% YoY as NEV Penetration Surpasses 60% for First Time

In April, domestic retail sales of fuel-powered vehicles totaled 534,000 units, down 37.2% year-over-year and 32.7% month-over-month. Despite an average price reduction of RMB 23,000 (a 17.2% decline), bringing the average selling price down to RMB 131,000, the market showed no signs of recovery, and consumer hesitation intensified. Meanwhile, the retail penetration rate of new energy passenger vehicles reached 61.4%—surpassing the 60% mark for the first time—with only one of the top ten best-selling models being a fuel-powered vehicle. High oil prices further eroded the competitiveness of fuel vehicles: international crude oil prices have risen by over 50% since 2026, and in China, the per-liter prices of Grade 92 and Grade 95 gasoline have increased by RMB 1.7 and RMB 1.8 respectively since the beginning of the year, adding nearly RMB 100 to the cost of filling a tank and widening the gap in operating costs compared to new energy vehicles. A survey revealed that more than 40% of consumers postponed their car purchases due to price wars, while 81.2% of current fuel-vehicle owners said they would prioritize new energy vehicles when replacing their cars, with only 13.3% still opting for fuel-powered models. Traditional automakers are cutting back on R&D investment in fuel vehicles and shifting focus toward electrification and intelligent technologies, causing a growing technological gap between fuel and new energy vehicles—particularly in areas like electronic architecture and driver-assistance systems.