China Is Preparing to Flood the Market with Even More Affordable EVs and PHEVs | Carscoops

      BYD, Nio, and others are reducing EV prices as Chinese automakers enter global markets with new models starting at just $14,000.

      Chinese car manufacturers are introducing budget-friendly electric vehicles (EVs) priced under $21,000 to expand internationally.

      The drop in EV prices raises concerns about intense competition and declining profits, with BYD and Great Wall Motor reporting profit declines of 30% amid these price reductions.

      Chinese automakers are ushering in a new phase in the electric vehicle era by inundating the market with affordable EVs and plug-in hybrids showcased at the Guangzhou Motor Show.

      These new vehicles are priced between 100,001 yuan ($14,100) and 150,000 yuan ($21,100), clearly indicating that China aims to dominate the mass electrification market.

      According to Nikkei Asia, many prominent Chinese automakers are preparing to export these competitively priced models. For traditional Western brands grappling with production expenses and emissions standards, these prices suggest not just strong competition but also the beginning of a global pricing reckoning.

      Global Expansion Begins

      At the event, several new EV and PHEV models were revealed, including the Leapmotor A10, which is anticipated to start around 100,000 yuan ($14,100) and will be exported worldwide. Likewise, the company’s Lafa 5 electric hatchback is expected to launch at a similar price point.

      Nio made a notable impact with its Firefly, displayed for the first time in right-hand drive. Priced at around 100,000 yuan ($14,100) in China, the Firefly plans to enter 17 new markets next year, extending to Central America and beyond. GAC also contributed with its Aion i60, a range-extending SUV that starts at 109,800 yuan ($15,500).

      Price Wars Persist

      The Chinese automotive sector has been engaged in a price war for several years, showing no signs of letting up, as manufacturers vigorously compete for market share. The lower pricing segment is becoming a particularly intense battleground, according to Nikkei Asia.

      In the first nine months of this year, 2.35 million EVs and plug-in hybrids priced between 100,001 yuan ($14,100) and 150,000 yuan ($21,100) were sold in China, making it the country’s largest market segment, up from under 1.5 million in the same price range last year.

      Conversely, vehicle models costing between 150,001 yuan and 200,000 yuan ($21,100–$28,200) remained stable at around 2.3 million sales.

      There has also been notable growth in even lower-cost NEVs. Sales in the $11,300 – $14,100 and below $11,300 price ranges have doubled to over 1 million units.

      Despite the increasing availability of affordable models being beneficial for Chinese consumers, it’s adversely affecting the automakers. Between July and September, BYD experienced a 30% decline in net profit, marking its first drop in four years. Great Wall faced a similar situation, with profits decreasing by 30% even as sales rose by 20%.

      Exports are also on the rise. In the first three quarters of this year, Chinese brands exported 1.75 million EVs and plug-in hybrids, representing an impressive 89% increase compared to the same period last year.

      Source: Nikkei Asia