Chinese Automakers Launch New Wave of Affordable Electric Vehicles
At the Guangzhou Motor Show, Chinese automakers unveiled a new generation of electric vehicles and hybrids with very attractive prices. These new products demonstrate China’s ambitions to dominate the mass market for electric vehicles worldwide.
Global Expansion of Chinese Electric Vehicles
Prices for new models start from 100,001 yuan ($14,100) to 150,000 yuan ($21,100), making them extremely attractive to international buyers.
According to Nikkei Asia, many of China’s largest automakers are preparing to export these budget novelties. For Western auto giants, who are still struggling with high production costs and environmental goals, such prices signal not healthy competition, but the beginning of a global price reassessment.
Among the new models presented at the exhibition is the Leapmotor A10, which is expected to cost about 100,000 yuan ($14,100) and is planned for export worldwide. The company also presented the Lafa 5 electric hatchback at a similar price.
Nio impressed attendees with the Firefly model, presented for the first time in a right-hand drive version. With a price of around 100,000 yuan ($14,100) in China, the Firefly will enter 17 new markets next year, including Central American countries. GAC presented its Aion i60 model – a crossover with a range extender, starting from 109,800 yuan ($15,500).
Price War Continues
The Chinese automotive industry has been in a state of price war for several years, and there are no signs of its end, as manufacturers fiercely fight for market share.
During the first nine months of this year, 2.35 million electric vehicles and hybrids were sold in China in the price range from 100,001 yuan ($14,100) to 150,000 yuan ($21,100). This makes this segment the largest in the national market, compared to less than 1.5 million in the same range last year.
Models priced between 150,001 yuan and 200,000 yuan ($21,100–$28,200) show stability at around 2.3 million sales.
A significant increase in sales of even more affordable NEVs is also observed. The number of vehicles sold in the price categories of $11,300 – $14,100 and under $11,300 doubled to over 1 million units.
Impact on Manufacturer Profitability
While the growing number of affordable models is a positive phenomenon for Chinese consumers, it harms the automakers themselves. In the third quarter, BYD’s net profit fell by 30%, the first decline in four years. Great Wall also suffered similar losses – profits fell by 30% despite a 20% increase in sales.
Meanwhile, exports continue to accelerate. In the first three quarters of this year, Chinese brands shipped 1.75 million electric vehicles and hybrids abroad, an impressive 89% more compared to the same period last year.
The affordability of Chinese electric vehicles could radically change the global automotive market, forcing traditional manufacturers to reconsider their business models and development strategies. Growing competition may accelerate the transition to electric vehicles worldwide, but simultaneously creates serious challenges for automakers trying to maintain profitability under such conditions.