(Yicai) April 15 -- Car sales in China will likely continue to grow in the second quarter of this year amid a competitive landscape in the Chinese auto market, the world's largest, with carmakers vying to offer more discounts and enhance vehicle configurations.

Many 4S (sale, spare parts, service, and survey) stores of Chinese electric vehicle startups and international auto giants in Shanghai and Guangzhou have launched discounts, financial incentives, cuts on insurance deductibles, replacement subsidies, and other support policies, leading to a jump in average monthly sales, Yicai found.

Retail sales of passenger cars in China beat expectations in the first quarter of this year after rising 6 percent to 5.13 million units from a year earlier, according to data from the China Passenger Car Association.

The rumors that the price of the Nio ET5 and the Nio ET5T, which feature battery swapping, has dropped to just over CNY120,000 (USD16,330), and that of the ES6 has fallen to just over CNY160,000 after the carmaker announced a limited preferential purchase plan at the start of this month are true, a salesman at its dealerships in Shanghai's Pudong district told Yicai.

However, the conditions to reach such prices are strict, and only a few buyers can meet them, the person said, adding that for most, the cost of the basic ET5 and ET5T models is between CNY160,000 and CNY170,000, a discount of about CNY50,000 (USD6,865) from the market price.

The M series of Aito, the EV marque of Seres Group; Dreamer, the plug-in hybrid EV of Voyah; and the D9, the large luxury multi-purpose EV of the joint venture between BYD and Mercedes-Benz Group, have also seen various price cuts.

Luxury brands have adapted to the price reduction trend in China's auto market, after BYD announced that it will trim the prices of 10 non-smart driving models to clear inventory at the end of last month, and BMW quickly following suit. Even though BYD cut prices by an average of just CNY10,000, while the cost of the BMW 5 Series fell nearly CNY150,000.

"The recently discounted models are all the 2025 facelifts launched last year, with more intelligent features added to their configurations," a salesperson at a BMW 4S store in Guangzhou said to Yicai. The BMW 3 Series models cost around CNY80,000, the 5 Series about CNY150,000, and the 7 Series about CNY230,000, with the possibility for further cut through negotiations, the person noted.

The Audi A6L, in the same class as the BMW 5 Series, has also seen significant discounts, with its starting price down to only around CNY280,000 from CNY427,900, a salesperson at a 4S dealership of the German auto giant in Guangzhou told Yicai. The starting prices of other Audi models have also fallen by varying degrees, the person said.

"After lowering prices, this year's average monthly sales have climbed from previous years," the person at the Audi dealership told Yicai.

"The starting price of the basic Mercedes-Benz E-Class model at the dealership can be lowered to the CNY300,000 range, that of the C-Class model can be trimmed by over CNY140,000, while the cuts of the GLC and GLE series are even higher, with a maximum cut of nearly CNY200,000," the person in charge of the carmaker's 4S outlet in Guangzhou said to Yicai.

"Under a five-year loan plan, the price of the Porsche Cayenne dropped by nearly CNY300,000 this month," a manager of a Porsche 4S dealership told Yicai. Ten models have been in the store for over 300 days, with one for more than 500 days, the person noted.

Editors: Tang Shihua, Martin Kadiev