CPCA Secretary-General Cui Dongshu stated that 77 passenger vehicle models cut prices nationwide from January to May 2026, four fewer than the same period last year. In May, NEV models that cut prices had an average price of 215,000 yuan, with an average price reduction of 21,000 yuan, representing a 9.6% cut. Cumulative Jan-May NEV average price reduction reached 31,000 yuan, or 12.5%.
Price Cut Scale: Market Signals Behind 77 Models
From January to May 2026, the number of passenger vehicle models with price cuts nationwide was 77, down 4 from the same period last year. This seemingly small number carries an important market signal: the intense price war that has lasted two years is gradually cooling, with promotional behavior returning to rational ranges.
Four Fewer Than Last Year, Promotions Return to Rationality
- 77 models with price cuts, 4 fewer than the same period in 2025
- Number of participating OEMs stabilizing, no longer blindly following
- Volume-for-price strategy showing diminishing returns, companies shifting to value competition
| Time Dimension | Models with Price Cuts | YoY Change | Market Characteristics |
|---|---|---|---|
| Jan-May 2024 | 89 models | — | Price war peak |
| Jan-May 2025 | 81 models | -8 models | Gradually cooling |
| Jan-May 2026 | 77 models | -4 models | Returning to rationality |
NEV Price Cut Intensity Analysis
NEV models are the main participants in this round of price cuts. In May, NEV models that cut prices had an average price of 215,000 yuan, with an average price reduction of 21,000 yuan, representing a 9.6% cut. Cumulatively from January to May, the average NEV price reduction reached 31,000 yuan, or 12.5%.
May vs. Jan-May Data Comparison
- May average price 215,000 yuan, concentrated in the mainstream consumption range
- May reduction 21,000 yuan, 9.6% intensity, relatively moderate
- Jan-May cumulative reduction 31,000 yuan, 12.5% intensity, greater intensity at the beginning of the year
| Metric | May Data | Jan-May Cumulative Data |
|---|---|---|
| Average price of models with cuts | 215,000 yuan | — |
| Average price reduction | 21,000 yuan | 31,000 yuan |
| Reduction intensity | 9.6% | 12.5% |
| Market characteristic | Moderate promotion | Greater intensity early in the year |
- Early-year reductions stronger as OEMs chased strong opening sales
- May saw reduced necessity for cuts as demand recovered
- Full-year reduction intensity expected to continue narrowing
Market Order Improvement and Outlook
Cui Dongshu noted that since 2025, promotional behavior has gradually returned to rationality, with market order significantly improving. This assessment aligns closely with the data performance.
Deep Reasons Behind Price War Cooling
- Policy guidance: Industry associations have repeatedly called for stopping vicious price competition
- Profit pressure: Sustained price cuts erode corporate profitability, making them unsustainable
- Consumer psychology: Frequent price cuts actually intensify wait-and-see sentiment, backfiring
- Product upgrades: OEMs are directing resources toward technology iteration rather than pure price cutting
From an overseas procurement perspective, the cooling of China's auto market price war does not mean opportunities are disappearing. On the contrary, a more rational pricing environment helps establish stable procurement expectations. Through platforms like EX1000.COM, overseas buyers can access validated reasonable price ranges, avoiding decision risks from short-term promotional fluctuations.
