Fuel-Powered Cars Slash Prices as EVs Gain Market Share

Recently, domestic fuel-powered vehicle prices have seen widespread and significant declines across multiple segments, ranging from entry-level to luxury models. Specifically, the base trim of Dongfeng Nissan's Sylphy now has a bare-car price as low as RMB 57,000, the entry-level Honda Accord is priced around RMB 110,000, and certain older Audi A6L models are being offered below RMB 270,000. This round of price cuts spans the A-segment, B-segment, and luxury vehicle markets, driven both by dealers proactively offering promotions to clear inventory and automakers indirectly subsidizing sales. The underlying cause is the rapid rise in market penetration of new energy vehicles (NEVs)—reaching 60% in April and further climbing to 62.5% in May—continuously squeezing the market share of fuel-powered vehicles and significantly increasing inventory pressure. In the short term, these price reductions offer cost-conscious consumers more value for money; however, in the long run, they could disrupt the existing ecosystem of the fuel-vehicle industry. Traditional automakers now face the challenge of balancing short-term sales stability with long-term electrification strategies, while consumers must make rational, well-considered purchasing decisions.