Foreign carmakers slash internal combustion engine prices by 23.4% in China
International brands like Volkswagen and Toyota cut petrol car costs significantly as electric vehicles capture growing market share amid a broader sales slump.
Foreign manufacturers producing vehicles in China reduced petrol-powered car prices by more than 20 percent to combat weak consumer demand. Data from the China Passenger Car Association shows an average discount of 23.4 percent on internal combustion engine models last month, rising slightly from 23.7 percent in July. This follows a period where new cars were priced at notably low levels, leading to promotional activities that yielded only a modest increase in sales. By contrast, the average discount for these same vehicles in 2023 was approximately 13 percent. Analysts attribute international brands' declining market share to China's rapid shift toward electric vehicles, which foreign automakers have moved slowly to adopt. The energy crisis linked to conflict in Iran has further darkened their sales outlook. Meanwhile, the share of electric vehicle sales on mainland China reached a record 65.2 percent last month, while total car sales fell by 23.6 percent compared to the previous year.
