On July 6th, Cui Dongshu, the Secretary-General of the China Passenger Car Association, highlighted in an article that since 2025, promotional campaigns and market downgrading practices within China's passenger car sector have adopted a more rational stance, leading to a notable enhancement in market orderliness. With the reinstatement of the purchase tax on new energy vehicles, the influence of the suggested retail price (SRP, or manufacturer's suggested retail price) on the tax obligations of consumers when purchasing vehicles has started to become apparent. In response to adjustments in the pricing framework, 22 car models experienced price reductions in May 2026, followed by 7 models in June. In stark contrast to the widespread price cuts observed from March to June of the previous year, the market's behavior during the corresponding period this year has been comparatively subdued, with brands that implemented price reductions demonstrating robust market performance. Specifically, in June 2026, a total of 7 car models underwent price reductions, marking a year-on-year decrease of 7 models. This included 4 pure fuel-powered models, representing a year-on-year decline of 2 models, and 1 plug-in hybrid model, reflecting a year-on-year reduction of 1 model. Given the substantial pressure faced by fuel vehicles and narrowly defined plug-in hybrid models, price adjustments appear to be a logical course of action.