Chinese Carmakers Unveil Sub-$21,000 EVs, Eye Overseas Markets As Domestic Market Price War Continues

• EVs and plug-in hybrids priced under 150,000 yuan unveiled at Guangzhou motor show.

• Leapmotor, NIO, and GAC target overseas markets amid intensifying domestic competition.

• EV prices in China fell 13% in 2025, increasing affordability and export potential.

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Electric vehicles and plug-in hybrids priced under 150,000 yuan (approximately $21,000 USD, or CAD $30,000) dominated the spotlight at the recent Guangzhou International Automobile Exhibition, reflecting Chinese automakers’ growing push to sell budget models abroad to offset intensifying domestic competition.

Leapmotor, a Chinese electric vehicle startup, introduced its new compact SUV, the A10, at the event, with a targeted price of around 100,000 yuan (approximately $15,500 USD or CAD $21,725). The company aims to launch the model globally in the first half of 2026, with rapid charging as one of its key features. Leapmotor also plans to offer the Lafa 5 EV hatchback in the same price range. Both models are expected to be sold internationally through a partnership with European automaker Stellantis.

Guangzhou Automobile Group Co., a state-owned manufacturer, also launched its Aion i60 SUV under the Aion brand. Available in both electric and range-extended (plug-in hybrid) versions, the model starts at 109,800 yuan, with no price difference between the two variants.

EV maker NIO unveiled a right-hand-drive version of its Firefly compact model, preparing to expand to 17 international markets, including Singapore and Central America. The company has already introduced the left-hand-drive version abroad, but the new variant is expected to further boost global sales.

The wave of budget models follows a sharp decline in domestic EV prices. According to Chinese passenger car industry data, the average price of electric passenger vehicles dropped 13% year over year to 142,000 yuan during the January to September period. In comparison, gasoline vehicle prices declined by 3%, while the overall market fell by 7%.

New energy vehicles (NEVs) priced between 100,001 and 150,000 yuan were the most popular during the same period, accounting for 2.35 million units sold. Lower-priced models are gaining momentum, with sales of NEVs priced between 80,001 and 100,000 yuan (between $15,800 and $21,275 CDN) doubling year over year.

Geely Galaxy, the NEV brand under Zhejiang Geely Holding Group, reported that half of its dealership customers in Guangdong province opt for its compact Xingyuan EV, which sells between 70,000 ($13,825 CDN) and 100,000 yuan.

The aggressive price reductions have led to concerns over sustainability. The China Association of Automobile Manufacturers (CAAM) has criticized the current level of price competition, warning that it could erode profitability across the sector.

BYD, one of the market leaders, reported a 30% year-over-year drop in net profit during the July–September quarter, the company’s first decline in four years. Its new-car sales also fell in September for the first time in 19 months. Great Wall Motor experienced a similar 30% decline in net profit during the third quarter, despite a 20% rise in sales volume.

With margins shrinking at home, Chinese automakers are increasingly targeting global markets. Exports of new energy vehicles reached 1.75 million units in the first nine months of 2025, up 89% from a year earlier. Industry analysts suggest that surplus domestic inventory could accelerate global exports, heightening competitive pressure on non-Chinese manufacturers.

Without getting political, if the Chinese automakers are allowed to enter the Canadian market, clear and crucial business barometers will need to be put in place as the hyper-competitive pricing strategy is unlikely to change on our shores.

Source: Nikkei Asia