China NEV Price Cuts Widen in October as Discounts Top 11%

In October, 14 models recorded notable price cuts, including six BEV models and three PHEV models.

Price discounts on new energy vehicles (NEVs) in China deepened in October, with the average markdown across discounted new models reaching RMB 18,000 ($2,520), equivalent to an 11.1% cut, surpassing September’s 9.8% level, according to the latest data from Cui Dongshu, secretary-general of the China Passenger Car Association.

For the January–October period, the average price reduction across NEV models stood at RMB 21,000 ($2,940), down 10.8%.

Compared with the broader passenger vehicle market, NEV discounts were more aggressive. Across the overall market in the first ten months, discounted new passenger cars averaged RMB 19,000 ($2,660), a decline of 10.3%, while petrol vehicles posted average markdowns of RMB 14,000 ($1,960), or 8.4%.

NEVs face mounting pricing pressure amid shifting subsidy policies, inventory restructuring and slower market growth.

In structural terms, 14 models recorded notable markdowns in October, including six battery electric vehicle (BEV) models, up by four from a year earlier, and three plug-in hybrid (PHEV) models.

Post-discount, the average BEV transaction price fell to RMB 138,000 ($19,320), representing an average cut of RMB 12,000 ($1,680) or 8%.

Among individual nameplates, the Hongqi EQM posted the steepest reduction, with its minimum guide price slashed from RMB 121,800 ($17,052) to RMB 89,800 ($12,572), a 36% drop.

The Dongfeng Yipai Nano 01 and the Hyper GT recorded reductions of 10% and 13%, respectively. Public data shows the Hyper GT sold only 1,466 units between January and October, with weak sales cited as a primary driver of markdowns.

Price swings were more pronounced across PHEVs. The average post-discount selling price for October PHEV models was RMB 218,000 ($30,520), with markdowns averaging RMB 42,000 ($5,880), or 19%, becoming a major catalyst behind the intensifying price war.

Two high-end models—the GAC Trumpchi E9 M8 and Great Wall Gaoshan—saw direct reductions of RMB 60,000 ($8,400) and RMB 64,000 ($8,960) respectively, representing cuts of roughly 22%. According to Cui, aggressive downward moves from leading automakers are forcing rivals to respond rapidly, reshaping the pricing structure in the premium PHEV segment.

Promotional intensity for NEVs stood at 9.8% in October, down 0.4 percentage points from September but 2.2 percentage points higher than a year earlier.

As year-end shopping season approaches, several automakers are expected to continue leveraging price strategies to stimulate demand. The transition of purchase-tax benefits from full exemption to a 50% reduction late next year may also spur early buying activity, suggesting price competition is unlikely to ease soon.

Cui said BEV discounts above 10% are likely to continue. While the price war may support short-term sales momentum, its longer-term impact on profitability will depend on product competitiveness and cost-structure improvements.