- NEV average transaction price fell to RMB 215,000 in May after a 9.6% average discount.
- Gasoline cars faced steeper cuts, averaging a 14.9% discount and lower RMB 166,000 selling prices.
- Dealers trimmed big price wars, shifting to volume-driven promotions while European brands lead with 37.4% incentives.
Latest data released by CPCA Secretary General Cui Dongshu shows that the average price of discounted new-energy vehicles (NEVs) in China stood at RMB 215,000 ($31,713) in May 2026, with an average price reduction of RMB 21,000 ($3,094), representing a discount rate of about 9.6%.
While still relatively high, the reduction was lower than the overall passenger vehicle market average discount rate of 10.8%.
From January to May, discounted NEV models carried an average transaction price of RMB 249,000 ($36,728), with average discounts reaching RMB 31,000 ($4,573), equivalent to a 12.5% reduction.
Even so, the figure remained below the broader passenger-car market average discount rate of 13.1%.
By comparison, discounted gasoline-powered vehicles in May recorded an average selling price of RMB 166,000 ($24,485), with average price reductions of RMB 25,000 ($3,688), translating into a significantly higher discount rate of 14.9%.
In terms of the number of discounted models, 20 vehicles saw price reductions in May, seven more than a year earlier.
Among them were seven gasoline-powered models, seven plug-in hybrids and five battery-electric vehicles.
At the model level, the largest discount among BEVs came from Anhui Volkswagen’s ID. Unyx 06.
Its starting price fell from RMB 189,900 ($28,010) to RMB 149,900 ($22,110), representing a 21% reduction.
Models including the Aito M9, Geely Xingyuan and Aeolus L7 also received price adjustments ranging from RMB 3,000 ($442) to RMB 10,000 ($1,475), equivalent to discounts of roughly 2% to 6%.
Notably, Xiaomi did not reduce prices for existing YU7 variants. Instead, it introduced a new entry-level version, lowering the starting price to RMB 233,500 ($34,441), RMB 20,000 ($2,950) below the currently available single-motor rear-wheel-drive model.
Among PHEVs, the Aeolus L8 recorded the steepest reduction. Its lowest selling price fell from RMB 239,900 ($35,386) to RMB 169,800 ($25,046), a decline of 29%.
The remaining six discounted plug-in hybrid models generally saw price reductions ranging between 1% and 8%.
Meanwhile, some PHEV models moved in the opposite direction. In May, the Lynk & Co 10 and Changan Nevo Q07 increased prices by RMB 2,000 ($295) and RMB 3,000 ($442), respectively.
Beyond outright price cuts, promotional strategies are also evolving.
Data from the retail market shows the promotional rate for NEVs stood at 9.8% in May, unchanged year-on-year but down 1.1 percentage points from April.
At the same time, dealerships have increasingly shifted toward maintaining sales volumes while protecting profitability, leading to a noticeable reduction in large-scale price wars.
European brands continue to offer the deepest discounts, with average terminal incentives reaching 37.4%. Other joint-venture automakers generally maintained promotional levels around 22%.
Chinese domestic brands averaged roughly 19.2%, making them among the most price-stable participants in the market.
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