ICE Vehicle Sales Plummet, Yet Bargain Prices Remain Elusive

[Market Watch] There is a significant gap between rumors about terminal pricing for internal combustion engine (ICE) vehicles and actual purchasing experiences.

Key Trend: ICE vehicle sales plummeted 37.5% year-over-year, yet deeply discounted models are hard to find

In May 2026, domestic sales of conventional ICE vehicles totaled only 650,000 units, down 8.4% month-over-month and sharply declining 37.5% year-over-year. Cumulative sales for the first five months reached 4.177 million units, a 24.1% decrease compared to the same period last year. Despite frequent social media reports of clearance sales—such as the domestically produced Land Rover Evoque allegedly priced as low as RMB 170,000—most consumers report difficulty securing such discounts in actual purchases.

Strategic Context: Inventory pressure and weak consumer confidence exert dual downward pressure

Automakers are accelerating their transition to electric vehicles, reducing resource allocation to ICE models. Combined with widespread consumer hesitation to commit to purchases, promotional activities at dealerships are largely confined to specific models or regions. As a result, non-popular ICE vehicles receive limited real-world discounts, creating a fragmented market characterized by "rumored low prices but no actual deals."