The quality of new gasoline cars in China has dropped for a second straight year as intensifying price competition forces automakers to cut corners, according to a J.D. Power survey released on Thursday.

The 2025 China Initial Quality Study showed owner-reported problems rose to 229 per 100 vehicles, up 17 from 2024.

The decline was broad-based, with domestic and mass-market brands each reporting 18 more issues per 100 cars, while premium marques worsened by 13.

"Against the backdrop of multiple competitive pressures in terms of technology, configurations and pricing, the IQS performance of traditional fuel-powered vehicles has sustained a pronounced year-over-year decline," said Elvis Yang, general manager of auto product practice at J.D. Power China.

He warned that maintaining market share while improving perceived quality would be a key challenge for internal-combustion carmakers during the transition to new energy vehicles.

The report highlighted that design flaws and manufacturing defects both rose sharply from 2024.

Complaints about infotainment systems, seats and driver-assistance functions were the most pronounced, underscoring risks created by the rush to add digital features.

Owners cited faulty voice recognition, unresponsive touch screens and weak Bluetooth connectivity as frequent problems.

The study also pointed to a widening gap between consumer demand for high-tech features and manufacturers' ability to ensure reliability.

All categories tracked except for power train recorded higher complaint rates.

Hybrid models are emerging as a bright spot. They accounted for 18 percent of fuel-vehicle sales in 2025, up from 14 percent in 2024, as prices fell 15 percent to an average 331,000 yuan ($46,425).

Hybrids scored better on initial quality and design than conventional gasoline cars, suggesting they could become a strategic weapon for legacy brands competing against electric-vehicle startups.

Among premium brands, Land Rover ranked highest in the segment with 208 problems per 100 vehicles.

GAC Honda topped mass-market brands with the same score, while Chery led Chinese domestic marques at 220.

Other top performers included Porsche, Cadillac, Dongfeng Honda, GAC Toyota, SAIC Volkswagen, GAC Trumpchi and Geely.

The survey, now in its 26th year, covered responses from almost 20,000 buyers of 148 models across 39 brands between July 2024 and March 2025.