April ICE Vehicle Sales Drop 37% YoY as NEV Market Share Keeps Rising

In April, nationwide retail sales of fuel-powered vehicles totaled 530,000 units, down 37% year-on-year. Prices of some popular fuel-powered models have dropped from over RMB 400,000 to around RMB 260,000–270,000, yet sales remain sluggish. Currently, the fuel-vehicle market is broadly adopting price cuts to clear inventory, while new energy vehicle (NEV) makers are gradually reducing discounts and raising prices. Fuel-powered vehicles have underperformed expectations in the first four months of this year. Combined with rising fuel prices, this has accelerated a shift in consumer preference toward NEVs, driving a rapid increase in their market penetration. Although fuel-powered vehicles are unlikely to disappear from the market in the short term, their pricing structure is undergoing significant readjustment. Despite currently low purchase prices, factors such as higher ownership costs and declining resale values pose risks for impulsive buyers.