Top Deals in China’s EV Market: Price Wars Explained

Leapmotor, Geely, Chery, IM Motors in Price War: Who Offers Real Cuts?China’s EV Price War: Who Really Offers Biggest Discount?

BYD ignited the first shot in the mid-year price war, and several brands quickly followed suit.

First was Geely Galaxy, which announced last week it had reached cumulative sales of one million units. It promptly launched the “Million Galaxy Limited-Time Subsidized Price” promotion, valid from May 26 to June 1, alongside multiple benefits.

Then came IM Motors and Chery. IM Motors announced on May 26 a fixed “all-in price” starting at ¥194,900 for the current LS6 model. Chery followed on May 27, launching limited-time discount and subsidy activities covering over 30 models across its four brands (Chery, Exeed, Jetour, iCAR), with maximum discounts reaching ¥55,000.

The “Universal Intelligent Driving” trend prevalent earlier in the year, amidst a safety-first atmosphere, has gradually faded. Now, in the mid-year period—traditionally a low season for car sales—major automakers are rolling out discounts to boost sales volume.

However, a question arises: Amidst the prevalent practice of factoring national subsidies (国补, guó bǔ) and manufacturer subsidies (厂补, chǎng bǔ) into advertised prices, which brand is actually offering the biggest discount?

The Subsidy Puzzle

Strictly speaking, besides the newly launched Xingyao 8 with a launch-limited price starting at ¥115,800, six Geely Galaxy models participated in the “Million Galaxy Limited-Time Subsidized Price” event. The official subsidized price range given was ¥59,800 – ¥134,800.

Crucially, fine print beneath the official poster title states: “Includes national trade-in subsidy and Geely trade-in subsidy.” Furthermore, the event’s mini-program page mentions that the limited-time subsidized prices for the Geome and Galaxy L6 EM-i include trade-in subsidies provided by Geely.

Looking at the specifics:

The Geely Geome’s price drops from the official limited-time guide price of ¥68,800 to the limited-time subsidized price of ¥59,800—a difference of ¥9,000. Geely attributes ¥3,000 of this to its own trade-in subsidy. The source of the remaining ¥6,000 is not explained by Geely.

For the L6 EM-i priced at ¥69,800 after subsidy, this price is defined as the “official limited-time guide price minus manufacturer trade-in subsidy and national subsidy.” The poster specifies trade-in subsidies of ¥2,000 for the 60km range version and ¥4,000 for the 140km range version.

Many consumers were confused about the nature of the discounts beyond the trade-in subsidies. When we called a dealer in Shantou, the response was: “Don’t know about this event.”

When contacting Geely Galaxy’s official customer service about whether the discount is available without a trade-in, the representative stated it would not be, but after being asked to confirm the source of the event information, she advised contacting local dealers for further details.

Chery’s limited-time subsidy period runs from May 27 to June 2, covering 30 models across its Chery, Exeed, Jetour, and iCAR brands.

However, the participation format varies significantly—even between brands and models within the same brand. Options include “limited-time subsidized price,” “limited-time comprehensive discount,” and limited-time financial incentives.

The highest listed “limited-time comprehensive discount” was ¥55,000 for the Chery Tiggo 8 Pro, theoretically allowing consumers to purchase this model for as low as ¥64,900.

Chery provided explanations for its pricing methods:

Limited-Time Subsidized Price: Official Guide Price minus (Cash Discount + Manufacturer Trade-in Subsidy + National Scrappage Subsidy).

Limited-Time Comprehensive Discount: The sum of (Cash Discount + Manufacturer Trade-in Subsidy + National Scrappage Subsidy).

Essentially, both represent the same calculation but present the result differently.

While the large-font, headline-grabbing lowest prices on the official posters are primarily aimed at consumers who qualify for both manufacturer and national trade-in/scrappage subsidies, regular consumers can still obtain some level of discount.

Is the “All-In Price” More Straightforward?

In contrast, IM Motors’ “all-in price” policy for in-stock LS6 models appears more direct.

From May 26 to June 30, users who lock in their order and take delivery can enjoy an all-in price starting at ¥194,900.

On top of this all-in price, consumers can stack a ¥15,000 government subsidy and choose between a fixed 5-year, 0% interest for the first two years, 0 down payment option, or a 5-year financing plan with a 1.99% rate.

The original launch guide price for this model was ¥204,900, meaning the current offer represents a ¥10,000 reduction.

This move by IM Motors is likely paving the way for the facelifted LS6, which has already appeared in the MIIT catalog featuring significant front-end updates (grille, headlights) and the introduction of a range-extender (EREV) version.

IM Motors isn’t alone. Brands like Buick (under GM) and FAW-Volkswagen have also used “all-in pricing” to boost competitiveness this year.

Examples include the VW Tayron L at ¥176,900, the Buick Regal at ¥106,900, and the Cadillac CT5 at ¥265,900 – all generating significant buzz.

Similarly, Leapmotor offered all-in prices of ¥111,800 for the C16 EREV 200 Premium Edition and ¥103,800 for the C10 EREV 200 Premium Edition during its promotion from May 24 to June 8.

While the “all-in price” is still a promotional tactic, it offers lower comprehension costs for consumers compared to discounts layered with various trade-in subsidies. There’s no need for complex calculations to determine the actual benefit.

In recent years, national, provincial, and manufacturer trade-in/scrappage subsidies have played a significant role in auto sales. The prospect of knocking several thousand yuan off the official price via these subsidies is undeniably attractive.

However, while consumers might naturally factor these into their calculations, it feels somewhat jarring when manufacturers prominently “strike through” the official guide price on billboards and splash a much larger font size on the subsidized price underneath. This approach seems to assume every customer will trade in an old car, potentially misleading non-trade-in customers.

The anxiety and contagion of intense competition continues to loom over the Chinese auto industry, constantly morphing in form – collective price cuts are one manifestation, as was the “universal intelligent driving” craze earlier this year.

In the short term, we might still be groping through the dark clouds for a while. The silver lining? If you’re looking to buy a car right now, the variety and magnitude of discounts are unprecedented.

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