Chinese media reported that an intense price war has become the defining feature of China’s automotive market over the past three years. What began in early 2023 with discounts offered by several electric vehicle manufacturers quickly spread across the industry, encompassing both traditional gasoline-powered vehicles and new-energy brands.
The competition has continued to escalate. Automakers have adopted a variety of pricing strategies, including launch-time discounts, insurance subsidies, financing incentives, trade-in rebates, and fixed “one-price” sales models. In 2025 alone, 177 vehicle models underwent price reductions, and the trend has continued into 2026 as both established manufacturers and new entrants seek to gain market share through aggressive pricing.
Competition now extends beyond rival brands to dealerships within the same brand network. In some cases, dealers have reportedly offered to undercut prices quoted by competing dealerships of the same brand in order to secure sales.
Industry observers also warned that competition has become increasingly irrational. In addition to prolonged price wars and below-cost discounting, automakers have accused rivals of engaging in online smear campaigns, coordinated social-media attacks, and the dissemination of misleading information. In April 2026, Li Auto founder Li Xiang publicly alleged that a Japanese automaker had employed external online marketing teams to spread negative content about several Li Auto models.
Source: Sohu, June 13, 2026
https://m.sohu.com/a/1036237813_116062?scm=10001.325_13-325_13.0.0-0-0-0-0.5_1334