In recent news from June 23, 2026, it has been reported that the sales of traditional fuel cars in China have seen a significant decline. Despite price reductions, there is a lack of interest from buyers, leading to some joint venture fuel car models starting to withdraw from stores. This information has become a hot topic on June 23rd. Industry experts have mentioned that with residents’ income expectations decreasing and consumer confidence waning, there has been a noticeable impact on the demand for major consumer goods like cars.
According to reports from Jiemian News on June 23, in several joint venture brand car stores in Beijing, traditional fuel cars that once occupied main display areas are now being gradually replaced by electric vehicles. For example, at a GAC Toyota store, there were only 4 cars displayed in the showroom – 2 electric vehicles and 2 fuel cars. Previously, there were nearly 10 different models on display, including the prominent Levin model which has now vanished from the showroom.
An employee at the showroom revealed that the Levin model was being sold at a loss, and now they have stopped displaying it. Moreover, the Levin model has transitioned to a made-to-order production system, with the store no longer maintaining regular inventory or relying on it to attract consumers to the store.
Data from a third-party platform shows that Levin’s retail sales in May had dropped to 194 cars. Just three years ago, Levin’s monthly sales figures were consistently above 10,000 units, making it a key model for GAC Toyota.
While there are still several traditional fuel car models on display in GAC Honda and FAW Toyota showrooms, most of these preserved models are higher-end mid-size cars or SUVs with bigger profit margins. However, sales representatives from these brands have indicated to Jiemian News that manufacturers have significantly reduced the production of traditional fuel cars this year, and there may be further cuts in the variety of fuel car models available in the future.
Facing poor sales, manufacturers are forced to reduce prices to attract customers. Currently, GAC Toyota is offering a 50,000 yuan discount on the Camry, FAW Toyota is giving a 60,000 yuan discount on the Avalon, and GAC Honda has a comprehensive discount of up to 75,000 yuan on the Accord. Prices of these joint venture mid-size cars, which used to be stable around the 200,000 yuan level, have now dropped to a range of 130,000 to 150,000 yuan, equivalent to a discount of 30 to 40%.
Data from the China Passenger Car Market Information Joint Alliance (PCA) shows that in the period from January to April, the prices of discounted traditional fuel car models dropped by an average of 34,000 yuan, a reduction of 14.6%. In April alone, the prices of these models decreased by an average of 23,000 yuan, a drop of 17.2%. Additionally, on May 15, Changan Automobile’s Eado Classic saw a price decrease of 26%, Chery announced a comprehensive subsidy of up to 40,000 yuan for purchasing their cars, and Kia’s new Lion model experienced a 29% reduction.
Insiders have revealed that the traditional fuel car market in China is currently seeing the largest wave of price reductions in history, with mainstream models experiencing price drops of 15% to 30%.
Several sales representatives have told Jiemian News that despite prices reaching historical lows and an increase in store traffic, the number of actual purchases has decreased. The decision-making process for consumers to make a purchase has more than doubled compared to previous years.
According to PCA data, in April, retail sales of traditional fuel cars were only 530,000 units, marking a 37% year-on-year decrease.
In response to the sluggish market, automobile manufacturers and dealers have begun actively reducing the supply of traditional fuel cars and shifting their focus from pursuing sales volume to selecting vehicles with higher profitability. Jiemian News has revealed that models like the Toyota Corolla, Toyota Levin, Honda Civic, Volkswagen Sagitar, and Nissan Sentra, which cater to mainstream family users in the 100,000 to 150,000 yuan price range, have been pivotal in driving joint venture brand sales, channeling customers for dealerships, and reducing distribution costs. Now, this essential customer base is starting to erode.
Industry experts have pointed out that the downturn in the Chinese car market is closely related to the overall weakening economic environment. In recent years, the Chinese real estate market has remained sluggish, with a decrease in residents’ income expectations and weakened consumer confidence, significantly impacting major consumer demands like automobiles. The current challenges in the Chinese car market reflect a microcosm of various pressures such as slower economic growth, consumer downgrading, and excess production capacity.