Cui Dongshu: The scale of price cuts for new cars this year is relatively moderate, and the spring car market has entered a good state of continuous strengthening

The Zhitong Finance App learned that on May 10, Cui Dongshu released an analysis of the price reduction in the passenger car market in April 2025. The scale of price cuts for new cars this year is relatively moderate. The current price competition is mainly due to the launch of new cars directly breaking through the lower limit of the original price, rather than a model of adding additional allocations without reducing the price. The models with reduced prices did not appear in April, and it is difficult to pay much attention to the price reduction, so the way to improve the cost performance ratio of new cars is better. There were generally few models with reduced prices until April 2025, mainly new energy vehicles, concentrated in February-April. There are more fuel vehicles in January and fewer in April, which is still normal. With the strengthening of the national promotion subsidies for scrapping and renewal, the market is picking up, and the driving effect on the car market is obvious. As a result, the pressure of the price war has decreased relatively, and the car market has entered a good state where it continues to strengthen in spring.

Cui Dongshu pointed out that the intensity of price reduction promotions was drastically reduced in 2025, especially for models with reduced prices in March-April. Prices of 7 models were cut in January 2025, and 21 models were cut in price in February. Compared to history, the number of models that were reduced in price in March was also at a high level of 23 models, while in April only 14 models were reduced in price, which is a sharp drop from 41 models in April last year and 19 models in April 2023, reflecting the marked cooling of the price reduction wave.

From January to April 2025, the price of conventional fuel vehicles was reduced by 16 models, 13 fewer than the same period; the price of hybrid fuel vehicles was reduced by 3 models; the price of hybrid vehicles was reduced by 13, 11 compared to the same period; the price of extended range models was reduced by 5 models, 5 fewer than the same period; and the price of pure electric models was reduced by 28 models, a decrease of 24 models compared to the same period. Due to good market growth, competitive pressure on the industry has been drastically reduced recently, and the number of models at reduced prices has also been drastically reduced.

The promotion of traditional fuel vehicles gradually declined to 22.2% in April 2025, an increase of 0.1 points over the previous month and an increase of 3.3 percentage points over the same period. In April 2025, the promotion of luxury cars gradually reached a high of 25.8%, down 0.3 points from the previous month, and an increase of 4.9 percentage points over the same period. In April 2025, the promotion of joint venture fuel vehicles gradually reached a high of 22%, an increase of 0.1 points over the previous month and an increase of 1.9 percentage points over the same period. In April 2025, the promotion of autonomous fuel vehicles gradually reached a high of 17.5%, an increase of 3.4 percentage points over the same period.

With the strengthening of the national promotion subsidies for scrapping and renewal, the market is picking up, and the driving effect on the car market is obvious. As a result, the pressure of the price war has decreased relatively, and the car market has entered a good state where it continues to strengthen in spring.

I. Overall price reduction tracking

1. Monthly price reduction status tracking

Cui Dongshu said that the price reduction analysis is mainly personal research. It mainly focuses on the situation where a new car is launched and breaks through the lower price limit in the early period, that is, price reduction in the narrow sense. Here, it mainly defines price reduction within two years. However, some new cars started selling very cheap two years ago, then increased in price, then announced price cuts. Although they did not break through the reserve price at the time of launch, in order to reflect the phenomenon of price cuts, they are also considered price cuts in this analysis.

Since some models segmented by power had multiple price adjustments during the year, according to the non-repetitive calculation method, the number of models was not simply added up, but repeated models were combined.

Judging from the pace of price reduction, there were generally many price cuts in 2023, and price cuts in 2024 reached a strong level in March and April. The intensity of price reduction promotions was drastically reduced in 2025. In particular, the price reduction models in March-April were drastically reduced. Prices of 7 models were cut in January 2025, and 21 models were cut in price in February. Compared to history, the number of models that were reduced in price in March was also at a high level of 23 models, while in April only 14 models were reduced in price, which is a sharp drop from 41 models in April last year and 19 models in 2023, showing the characteristic that the wave of price cuts has clearly cooled down.

2. Analysis of the lowest price of the model

The scale of price cuts for new cars this year is relatively moderate. The current price competition is mainly due to the launch of new cars directly breaking through the lower limit of the original price, rather than a model of adding additional allocations without reducing the price. The models with reduced prices did not appear in April, and it is difficult to pay much attention to the price reduction, so the way to improve the cost performance ratio of new cars is better.

There were generally few models with reduced prices until April 2025, mainly new energy vehicles, concentrated in February-April. There are more fuel vehicles in January and fewer in April, which is still normal.

The price of conventional fuel vehicles was reduced by 16 models from January to April 2025, 13 fewer than the same period; the price of hybrid fuel vehicles was reduced by 3 models from January to April 2025, a decrease of 3 models; the price of plug-in hybrid vehicles was reduced by 13 models from January to April 2025, a decrease of 11 models; the price of extended-range models from January to April 2025 was reduced by 5 models, a decrease of 24 models compared to the same period.

Fourteen models were reduced in price in April 2025, including 3 fuel vehicles, 6 fewer than the 9 models in April 2024; 0 hybrid fuel vehicles, 2 fewer than the 2 models in April 2024; 4 plug-in mixers, 5 fewer than the 9 models in April 2024; 2 extended-range models, 1 less than the 3 models in April 2024; and 5 pure electric models, 13 fewer than the 18 models in April 2024. Due to good market growth, competitive pressure on the industry has been drastically reduced recently, and the number of models at reduced prices has also been drastically reduced.

3. Comprehensive price reduction margin

From January to April 2025, the arithmetic average price reduction for new NEV models reached 27,000 yuan, and the price reduction reached 13.3%. In April, the price reduction for new NEV models reached an arithmetic average of 36,000 yuan, and the price reduction reached a low level of 18%.

From January to April 2025, the arithmetic average price reduction for new models of conventional fuel vehicles reached 18,000 yuan, and the price reduction reached 9.5%. In April, the arithmetic average price reduction for new models of conventional fuel vehicles reached 16,000 yuan, and the price reduction reached 6.8%.

From January to April 2025, the overall price reduction for new car models in the passenger car market reached an arithmetic average of 25,000 yuan, and the price reduction reached 12.3%. In April, the overall price reduction for new car models in the passenger car market reached an arithmetic average of 32,000 yuan, and the price reduction reached 15.2%.

4. Models with increased prices for imported cars

Due to the Sino-US tariff war, changes in tariffs have brought about changes in car prices. Currently, there are no models imported in April that have increased in price due to tariffs.

II. Auto Market Promotion Tracking

1. The promotion of new energy vehicles has increased dramatically

The promotion of new energy vehicles fell to a low of 9.4% in April 2025, a sharp drop from the same period. Promotions have increased in recent months. With the moderation of price cuts, the advantages of the promotion system have become apparent, and it has now reached a high level of normal promotion.

2. Fuel vehicle promotion trend

The promotion of traditional fuel vehicles gradually declined to 22.2% in April 2025, an increase of 0.1 points over the previous month and an increase of 3.3 percentage points over the same period. Promotions for traditional fuel vehicles began to rise sharply in August 2023, and hovered at a recent high level of 22% from July to December 2024. The national subsidy policy has promoted a steady trend in the fuel vehicle industry.

3. Luxury car promotion trends

In April 2025, the promotion of luxury cars gradually reached a high of 25.8%, down 0.3 points from the previous month, and an increase of 4.9 percentage points over the same period. Although consumption upgrades drive strong high-end demand, luxury car promotions continued to increase to 25.1% from April to July 2024 due to the diversion of new energy sources, which is at a record high level. With production cuts and price stabilization, luxury car promotions fell to 24.3% in August, but as market competition intensified, promotion strength rebounded to a high level of 26.2% in January 2025, and was relatively stable in April.

4. Mainstream joint venture vehicle promotion trends

In April 2025, the promotion of joint venture fuel vehicles gradually reached a high of 22%, an increase of 0.1 points over the previous month and an increase of 1.9 percentage points over the same period. Joint venture promotions grew dramatically, from a low of 13% in 2023 to 22.5% in March-June 2024, breaking through 22.9% in August, then stabilizing at 22% in April this year.

5. Autonomous fuel vehicle promotion trend

In April 2025, the promotion of autonomous fuel vehicles gradually reached a high of 17.5%, an increase of 3.4 percentage points over the same period. Autonomous car companies' promotions increased rapidly from March to August 2024, and generally stabilized in August/December thereafter. Since independent new energy promotions are smaller than fuel vehicles, the share of exports has increased, so overall promotion is relatively stable.

6. Tracking the intensity of promotion by motivation

The promotion pressure for conventional fuel vehicles and hybrids in early 2025 was less intense, and promotions for new energy sources were relatively intense. In particular, plug-in hybrid promotions fluctuated a lot, down 5.5 points from April last year; promotions for pure electric vehicles decreased by about 2.5 points from April 2024; and promotions for extended-range models dropped by about 4.2 points from April 2024 after price reduction.

3. Tracking specific models at reduced prices - April

1. Pure electric price reduction analysis

The average price reduction for new pure electric models in April 2025 was 158,000 yuan. The price reduction reached 22,000 yuan, and the price reduction for new cars reached 12%. The overall scale of the price reduction for pure electric vehicles in April of this year was also huge. In particular, the price reduction of some models reached more than 10%. Coupled with the price cuts of some model adjustments, the intensity was still amazing.

2. Mixed price reduction analysis

The average price reduction for new hybrid models in April 2025 was 173,000 yuan. The price reduction reached 66,000 yuan, and the price reduction for new cars reached 28%. The overall intensity of the models reduced in price was relatively moderate, but the prices gradually formed the same price level of leading companies. This kind of price reduction is an inevitable trend.

3. Analysis of fuel vehicle price reduction

The average price reduction for new fuel models in April 2025 was 225,000 yuan. The price reduction reached 16,000 yuan, and the price reduction for new cars reached 7%. As price cuts for some high-end models have begun to gain momentum, the overall price reduction has been significant.

4. Hybrid power price reduction analysis

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5. Extension price reduction analysis

The average price reduction for new extended-range models in April 2025 was 151,000 yuan. The price reduction reached 11,000 yuan, and the price reduction for new cars reached 7%. Due to small-scale price adjustments for some mid-range and high-end models, the overall price reduction was moderate.