Cui Dongshu: In February, six passenger car models nationwide saw price reductions. Industry promotions and downgrades have both returned to rationality.

Auto Times Financial APP learned that Cui Dongshu, Secretary General of the China Passenger Car Association, stated that since 2025, the promotion and discounting of the national passenger car industry have returned to rationality, and market order has significantly improved. Due to the resumption of tax collection on new energy vehicles, the guide prices’ impact on consumers’ purchase taxes is evident. In January 2026, 17 models reduced prices, and in February, 6 models did so. The market remained relatively restrained this February, with 4 fuel vehicles maintaining the same level as the same period last year; 2 pure electric models, 7 fewer than the same period last year.

In February 2026, the average price of new energy vehicles that reduced prices was 354,000 yuan, with an arithmetic average discount of 48,000 yuan, representing a high level of 13.5%. In the same month, conventional fuel vehicles had an average price of 371,000 yuan with an average discount of 46,000 yuan, or 12.5%. Overall, the average price of new cars in the passenger vehicle market was 361,000 yuan, with an average discount of 47,000 yuan, or 13.1%.

Due to some brands returning to guide prices after discounts, promotional margins have decreased. In February 2026, promotions for new energy vehicles rebounded to a mid-to-high level of 10.4%, an increase of 0.5 percentage points from the same period, and a slight increase of 0.3 points from the previous month. Promotions for traditional fuel vehicles decreased to 23.5%, down 0.2 percentage points from last month but up 1.8 points from the same period last year.

1. Overall Price Reduction Tracking

1. Monthly Discount Trends

The analysis mainly focuses on new cars that have broken through previous price floors, indicating more covert price cuts, defined here as discounts within two years. Some new cars launched two years ago at low prices, then announced price increases due to lithium carbonate prices, and now announce discounts. Although they haven’t broken the original launch price, these are counted as discounts for analysis.

Since some models undergo multiple price adjustments within a year based on powertrain variations, the number of models is consolidated without double counting.

Looking at the discount rhythm, overall discounts in 2023 were more frequent, 2024 saw a peak around March-April, and in 2025, some automakers’ phased promotional campaigns in Q2 included fixed prices with subsidies, without explicitly lowering to new prices—these are treated as promotions rather than discounts, which will be reflected below in promotional scope.

In response to the reshaping of the pricing system, in January 2026, 17 models reduced prices; in February, 6 models did so, compared to 21 models in February last year, indicating a relatively restrained market this February.

2. Lowest Price Analysis

In 2020-2021, automaker discounting was modest; from 2022-2024, discounts intensified. In 2025, 177 models saw price cuts, with January 2026 being relatively active in new car discounts, but February saw a sharp decrease due to the Spring Festival. The 2025 price competition mainly involved new models directly breaking through previous price floors rather than increasing features without lowering prices.

With the start of tax collection on new energy vehicles, many models saw direct discounts in January-February 2026, returning inflated guide prices and benefiting consumers by making tax costs more reasonable.

By February 2026, the overall number of discounted models was quite substantial, mainly involving luxury cars’ price adjustments.

In 2025, 177 models were discounted, 42 fewer than the same period last year. Among these, 52 conventional fuel models decreased in price (26 fewer), 9 hybrid fuel models (9 fewer), 30 plug-in hybrid models (1 fewer), 13 extended-range models (1 fewer), and 73 pure electric models (5 fewer).

In February 2026, 6 models were discounted, 15 fewer than the same period last year. Among these, 4 fuel models remained unchanged, and 2 pure electric models, 7 fewer.

3. Overall Discount Magnitude

From January to December 2025, the average price of new energy vehicle models that discounted was 195,000 yuan, with an average discount of 21,000 yuan, or 11%. In February 2026, the average price of discounted new energy vehicle models was 354,000 yuan, with an average discount of 48,000 yuan, or 13.5%.

For conventional fuel vehicles, from January to December 2025, the average price of models that discounted was 178,000 yuan, with an average discount of 16,000 yuan, or 8.9%. In February 2026, the average price was 371,000 yuan, with a discount of 46,000 yuan, or 12.5%.

Overall, in the passenger car market, the average price of new car discounts from January to December 2025 was 191,000 yuan, with an average discount of 20,000 yuan, or 10.5%. In February 2026, the overall average was 361,000 yuan, with a discount of 47,000 yuan, or 13.1%.

4. Imported Car Price Changes

Due to major changes in high-end market competition and a deteriorating market environment, discounted models have gradually appeared. To protect dealer interests and consumer rights, brands like BMW have begun adjusting guide prices, with actual transaction prices remaining stable. These adjustments are still meaningful.

2. Market Promotion Tracking

1. Slight Increase in New Energy Vehicle Promotions

In February 2026, promotion levels for new energy vehicles rose to a mid-to-high level of 10.4%, an increase of 0.5 percentage points from the same period, and a slight increase of 0.3 points from last month. Recent months’ promotions have been stable, supported by restrained price cuts and new promotional models like low-interest financing, leading to a recovery in promotion systems, maintaining a relatively high level.

2. Fuel Vehicle Promotion Trends

In February 2026, traditional fuel vehicle promotions declined slightly to 23.5%, down 0.2 percentage points from last month but up 1.8 points from the same period last year. Fuel vehicle promotions have maintained around 24% for five consecutive months. From July to December 2024, promotions hovered near 22%, supported by national subsidy policies. Since September 2025, automakers slightly increased promotions, with moderate growth.

3. Luxury Car Promotion Trends

In February 2026, luxury car promotions gradually reached 27%, a high level, down 1.8 points from last month but up 1.2 points from the same period last year. Despite strong demand driven by consumption upgrades, since May 2025, luxury car promotions have increased, but recent large adjustments in new car guide prices have led to a slight decline in promotions, with little change in actual prices.

4. Mainstream Joint Venture Car Promotions

In February 2026, joint venture fuel vehicle promotions reached 23.3%, up 1 point from last month and 2 points from the same period last year. Promotions have slightly increased recently.

From a low of 13% in 2023, joint venture fuel vehicle promotions rose to 23.3% in September 2025, with slight fluctuations over the past three months. Strong promotion performance before the Spring Festival kept promotion levels stable and slightly rising.

5. Domestic Fuel Vehicle Promotions

Due to strong domestic new energy and good export performance, promotions for domestic fuel vehicles remained stable in 2025.

In February 2026, domestic fuel vehicle promotions reached 18.2%, up 1.6 points from the same period last year. Promotions increased rapidly in the first half of 2024-2025, then stabilized.

6. Powertrain-Specific Promotion Tracking

Partly due to brands returning to guide prices after discounts, promotional margins have decreased. Promotions for conventional fuel and hybrid vehicles in 2026 are relatively small, while overall electric vehicle promotions have declined significantly due to price reductions. Plug-in hybrid models saw large fluctuations, with a 0.7-point increase in February year-over-year, and a 0.1-point decrease month-over-month; extended-range models increased about 3.1 points compared to February 2025. Overall, pure electric vehicle promotions decreased about 0.1 points from February 2025 but increased 0.4 points from last month.

February’s market promotions remained stable, with dealers maintaining steady promotions to protect profits. Currently, European brands have larger promotions, while other joint ventures hover around 25%. Domestic brands have the smallest promotional levels.

3. Specific Discounted Models Tracking - February

1. New Energy Vehicle Discount Analysis

In February 2026, new energy models’ discounts appeared relatively large, with some models’ guide prices dropping by up to 15%, but the actual impact was limited. Based on a 10% promotion scale, the price reductions for normal models are manageable.

2. Fuel Vehicle Discount Analysis

In February 2026, many fuel models experienced discounts, with many breaking through original guide prices without official price cuts. The average price of discounted models was relatively low, and the discount levels were high. These discounts helped change the passive situation of fuel vehicles, leading to significant guide price adjustments.