CPCA's Cui Dongshu said promotions and model downgrades in China's passenger‑car
market have normalized since 2025 and market order has improved. He noted the
restoration of NEV purchase tax has reintroduced the effect of manufacturers'
guide prices on consumers' tax liabilities. In May 2026, 20 models had price
cuts, up 7 YoY — including 7 pure ICE models (+5 YoY) and 7 PHEV models (+4
YoY); he said price pressure on ICE and narrow‑definition PHEVs is high, so
adjustments are understandable. Year‑to‑date through May 2026, 77 models
recorded price cuts, down 4 YoY: conventional ICE 32 models (+13 YoY); hybrid
ICE 4 (+1 YoY); PHEV 16 (flat); range‑extended 3 (-4 YoY); BEV 22 (-14 YoY). In
May In 2026, discounted NEV models had an average list price of 215,000 yuan and an
average cut of 21,000 yuan (avg. reduction 9.6%). Jan–May 2026 discounted NEV
models averaged 249,000 yuan with an average cut of 31,000 yuan (avg. reduction
12.5%).
