32 Gasoline Models Cut Prices in First Five Months; NEVs Dominate Sales Charts

From January to May this year, a total of 32 conventional fuel-powered vehicle models in China reduced their prices, an increase of 13 models compared to the same period last year. In May, the average market price of discounted fuel-powered models was RMB 166,000, with an average price reduction of RMB 25,000 per vehicle, representing an overall discount rate of 14.9%. Amid the rapid adoption of new energy vehicles (NEVs), sales of fuel-powered vehicles have continued to decline, increasing inventory pressure on dealerships. In April, the automotive dealers’ composite inventory coefficient reached 1.89, a significant year-over-year increase, with more than ten mainstream brands reporting inventory levels exceeding two months’ worth of sales. To clear inventory and boost sales, multiple brands—including Changan, Kia, Volkswagen, and Audi—have introduced substantial discounts, with some models seeing price cuts approaching 30%. In April’s top-ten best-selling passenger vehicle rankings, only one fuel-powered model made the list, while the remaining nine were all NEVs. In the first quarter, the automotive industry’s profit margin fell below the manufacturing sector’s average. Although fuel-powered vehicles still hold advantages in scenarios such as long-distance driving, off-roading, and commercial use, they are being increasingly replaced by NEVs in the consumer (private-use) market.