Cui Dongshu: The sharp shrinkage of A00-level electric vehicles in March has led to an increase in average price, putting considerable pressure on sales growth in 2026.

Cui Dongshu, Secretary General of the China Passenger Car Association, stated today that the prices of conventional gasoline vehicles continue to rise, leading to a noticeable market contraction in the mid- to low-end segment, while the high-end segment is contracting at a slower pace. As a result, the average price of gasoline vehicles is expected to increase from 166,000 RMB in 2021 to 188,000 RMB in 2024. With the rapid contraction of high-end gasoline vehicles in 2025, the average price is projected to decrease to 182,000 RMB, and then to 181,000 RMB in March 2026. The purchasing group for gasoline vehicles is gradually stabilizing. The penetration rate of automobiles in China is only 254 vehicles per thousand people, and the popularization of automobile consumption is considered the most important trend for the future. The continuous decrease in vehicle prices is driven by the low cost of electrification. Currently, with the withdrawal of the vehicle purchase tax exemption policy and the upgrade of the technology index for tax exemption for new energy vehicles, some short-range and high-power consumption electric vehicle models are facing pressure for redesign. The drastic contraction of A00-class electric vehicles in March has led to an increase in the average price, putting pressure on sales growth in 2026.