Cui Dongshu: In May, the prices of 20 models of cars were reduced, with promotions for new energy vehicles dropping to 9.8% at a medium to high level.

The article by Cui Dongshu, a member of the China Automobile Dealers Association, stated that since 2025, the promotion and price reduction of the national passenger car industry have both returned to rationality, and the market order has significantly improved. Due to the resumption of vehicle purchase taxes for new energy vehicles, the impact of the guide price on consumers' vehicle purchase taxes is evident. In May 2026, the number of models reduced prices by 20, an increase of 7 compared to the same period. Among them, there were 7 pure petrol car models, an increase of 5 compared to the same period; 7 plug-in hybrid models, an increase of 4 compared to the same period. The pressure on petrol cars and narrow-definition plug-in hybrids is too great, so the price adjustments are understandable. In May 2026, the number of reduced price models was 77, a decrease of 4 compared to the same period, including 32 reduced price models for conventional petrol cars, an increase of 13 compared to the same period; 4 reduced price models for hybrid petrol cars, an increase of 1 compared to the same period; 16 reduced price models for plug-in hybrid petrol cars, the same number as the same period; 3 reduced price models for extended range models, a decrease of 4 compared to the same period; 22 reduced price models for pure electric models, a decrease of 14 compared to the same period. In May 2026, the average price reduction of new energy vehicles reached 2.1 million yuan, with an average price reduction rate of 9.6%. From January to May 2026, the average price reduction rate of new energy vehicles reached 3.1 million yuan, with an average price reduction rate of 12.5%. In May 2026, the average price reduction rate of traditional petrol cars reached 2.5 million yuan, with an average price reduction rate of 14.9%, compared to 3.3 million yuan and 14.6% from January to May. In May 2026, the average price reduction rate of total passenger car market new models reached 2.2 million yuan, with an average price reduction rate of 10.8%. From January to May 2026, the average price reduction rate of total passenger car market new models reached 3.2 million yuan, with an average price reduction rate of 13.1%. In May 2026, the promotion of new energy vehicles decreased to a high level of 9.8%, the same as the same period, and a decrease of 1.1% from the previous month. The promotion of traditional petrol vehicles in May 2026 has risen to 22.5%, an increase of 0.4 percentage points from the previous month, maintaining the same level as the same period, and the promotion of petrol vehicles has been around 23% for over a year. In May 2026, the promotion of luxury cars gradually increased to a high level of 25.2%, an increase of 1.2 percentage points from the previous month, and a decrease of 0.5 percentage points compared to the same period. The promotion of joint venture petrol cars in May 2026 gradually reached a low level of 22.3%, a decrease of 0.1 percentage points from the previous month, and a decrease of 0.2 percentage points compared to the same period. The promotion of independent petrol cars in May 2026 gradually increased to a high level of 18.8%, an increase of 1 percentage point from the same period. Overall, the article provides an analysis of the price reduction and promotion trends in the Chinese passenger car market, focusing on new energy vehicles, traditional petrol cars, and various power types.