The retail sales rankings for passenger vehicles in May 2026 reveal that all top ten models are new energy vehicles (NEVs). Leading the pack is the Geely Starwish, a compact electric vehicle, with monthly sales of 38,800 units. Trailing behind is the Tesla Model Y, with 28,900 units sold, while the Xiaomi SU7 takes third place with 24,000 units. Within the top ten list, pure electric, extended-range, and plug-in hybrid models each secure a spot, with no traditional fuel vehicles in sight.

This milestone marks a historic turning point. Just in January of the same year, there were still seven fuel vehicles in the top ten rankings; by March, this number had dwindled to five; in April, only the Geely BinYue remained as a “lone survivor,” barely holding its ground; and by May, fuel vehicles had been completely eradicated from the list. From dominating the majority to being entirely eliminated, the entire process took less than six months.

Meanwhile, the retail penetration rate of new energy vehicles has soared to 62.9%, a record high. This indicates that out of every ten new vehicles sold, more than six are NEVs. Consequently, the market share of fuel vehicles has dwindled to 37.1%. More notably, the year-on-year decline in fuel vehicle sales accounts for 82% of the total decline in passenger vehicle sales. It is fair to assert that fuel vehicles are hindering the overall market growth momentum.

However, the reality of the May auto market is far more intricate than what the surface data suggests.

On one hand, NEVs have made a strong surge, with their product lineup spanning the entire price spectrum—from entry-level commuter cars priced at 30,000 yuan to mid-to-high-end family vehicles priced at 300,000 yuan—offering consumers electrified options across various budget ranges. On the other hand, fuel vehicles have not vanished entirely; they have merely exited the top ten rankings.

Looking at the top 20 in sales, four fuel vehicle models—the Geely Boyue, Volkswagen Lavida, Nissan Sylphy, and Geely BinYue—still make the list, with monthly sales exceeding 10,000 units. However, former star models are losing their luster at an alarming rate. The Corolla, which once consistently sold over 30,000 units per month, now only sells around 3,000 units. Models like the Hyundai Elantra and Buick Excelle, which once regularly sold over 10,000 units per month, have also completely fallen out of the mainstream.

Fuel vehicles are becoming a niche segment, a result that is the inevitable outcome of the long-term interplay of multiple factors.

The primary driving factor is the cost of use. Domestic fuel prices remain persistently high, with a 1.5L fuel sedan costing approximately 60 to 80 yuan in fuel per 100 kilometers, while a comparable pure electric model, relying on off-peak electricity prices, costs only 5 to 10 yuan in electricity per 100 kilometers. For cost-conscious working-class families and ride-hailing drivers, the annual difference of thousands of yuan in fuel and electricity costs is significant enough to influence their purchasing decisions.

Secondly, after more than a decade of technological iteration, NEVs now comprehensively outperform fuel vehicles of the same price range in terms of intelligent experience, quiet cabins, and smooth power delivery. Extended-range and plug-in hybrid models, with their “fuel and electric” dual capabilities, perfectly meet the dual needs of cost-effective urban commuting and long-distance inter-provincial travel, eliminating the need for consumers to choose between “cost savings” and “convenience.”

In contrast, fuel vehicles are suffering from slow product iteration and generally lagging intelligent configurations, finding themselves in a dilemma of “difficult sales without price cuts, but even more difficult sales with price cuts.” In May, a total of 20 models across the market offered price reductions, including 7 pure fuel models. While price cuts have brought short-term sales increases, they have further eroded residual value and brand premium, creating a vicious cycle.

From the dominance of fuel vehicle “legendary models” to the complete takeover of NEVs in the rankings, China’s auto market has undergone a transformation from quantitative to qualitative change in less than six months. Fuel vehicles have been “kicked out of the group chat,” not due to a single earth-shattering event, but through the cumulative effects of daily usage cost comparisons, gaps in intelligent experiences, and the toll of each round of price wars, which collectively shaped consumer choices. The consumer balance has tipped decisively, and this time, it may never tip back.

The electrification of China’s auto market has shifted from policy-driven to market-driven, evolving from gradual change to accelerated transformation. The luster of fuel vehicles has not faded slowly; rather, like their rankings on the leaderboard, they have gone from dominating the majority to completely disappearing in less than six months. Overnight, the page has turned. What are your thoughts on this? Let’s discuss in the comments section!