China’s Low-End EV Market Shrinks as Average Price Climbs to $24,300

Latest data released by CPCA Secretary General Cui Dongshu showed that the average selling price of passenger vehicles in China reached RMB 171,000 ($25,180) in April 2026, up approximately RMB 3,000 ($440) year-on-year.

Despite intense market competition and an ongoing price war across the automotive industry, average prices for new energy vehicles continued rising.

In April, the average selling price of new energy passenger vehicles reached RMB 165,000 ($24,300), up 5.1% year-on-year and approximately RMB 8,000 ($1,180) higher than the same period last year.

The main reason behind the increase is a structural shift in the market. Over the past several years, growth in China’s NEV sector was largely driven by low-cost battery electric vehicles.

However, after entering 2026, the sub-RMB 50,000 ($7,360) segment began contracting significantly. Data showed that sales of NEV models priced below RMB 50,000 ($7,360) fell 44% year-on-year this year.

As the low-end market weakens, the center of gravity for overall NEV sales is shifting toward the mid-to-high-end market.

Currently, extended-range electric vehicles and hybrid models carry the highest average transaction prices in the NEV market, reaching RMB 239,000 ($35,160) and RMB 213,000 ($31,330), respectively, in April.

By comparison, battery electric vehicles recorded an average selling price of only RMB 147,000 ($21,620), remaining the lowest-priced powertrain category within the NEV market.

Looking at powertrain distribution across different price bands, the structure of China’s NEV market remains uneven.

In the sub-RMB 100,000 ($14,710) segment, NEVs showed the weakest performance, while EREVs remained most concentrated in the premium market.

HEVs were mainly concentrated in the RMB 150,000–400,000 ($22,070–$58,840) price range.

PHEVs were more concentrated in the RMB 100,000–200,000 ($14,710–$29,420) range, which has become the current mainstream market segment.

By contrast, the pricing structure of traditional ICE vehicles remained relatively stable, with most sales concentrated in the RMB 50,000–200,000 ($7,360–$29,420) range, while maintaining a certain scale in the above-RMB 300,000 ($44,130) premium segment.

At the brand level, the average selling price of luxury passenger vehicle brands in April reached RMB 326,000 ($47,970), down RMB 35,000 ($5,150) year-on-year.

Joint-venture brands averaged RMB 173,000 ($25,450), remaining largely flat from a year earlier.

Over the same period, emerging EV brands recorded an average selling price of RMB 223,000 ($32,800), up RMB 14,000 ($2,060) year-on-year.

Meanwhile, domestic Chinese brands averaged RMB 125,000 ($18,390), up RMB 7,000 ($1,030).

Based on recent market trends, China’s auto industry is gradually shifting toward a “profit-first” strategy.

This also suggests that the era of relying on ultra-low prices to rapidly boost sales volume is beginning to fade.