NEV Market Share Tops 60% for First Time as ICE Vehicles Slash Prices to Clear Inventory

Recently, China's internal combustion engine (ICE) vehicle market has witnessed a widespread price-cutting wave, with dozens of mainstream fuel-powered models significantly lowering their prices. BMW Brilliance Automotive adjusted the manufacturer's suggested retail prices (MSRP) for 31 models, among which 24 saw reductions exceeding 10%, five dropped by more than 20%, and the steepest cut reached RMB 301,000. Mercedes-Benz slashed official prices for key models like the C-Class and GLC by up to RMB 69,000. Volkswagen models such as the Golf and Magotan are now selling at substantially lower transaction prices at dealerships compared to their official MSRP. Similarly, actual transaction prices for models like Dongfeng Nissan’s Sylphy, Changan’s Eado, and Geely’s Binyue have also declined markedly. This round of price cuts is primarily driven by automakers’ headquarters, aiming to accelerate inventory clearance and make room for upcoming new models. The underlying catalyst is the rapid expansion of the new energy vehicle (NEV) market, which is increasingly squeezing the market share of ICE vehicles. Data shows that in April 2026, NEVs accounted for 61.4% of China’s passenger vehicle retail sales, with 849,000 units sold, while ICE vehicle retail sales totaled only 530,000 units—a year-over-year decline of 37%. China’s passenger vehicle market is now entering a new phase dominated by new energy vehicles.