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Themis Qi

The market for six-seat premium SUVs in China is expected to become a more intense battleground, squeezing carmakers by forcing them to cut prices or enhance key features in a fight for market share, according to analysts.
Xpeng priced its new electric SUV the GX at 269,800 yuan (US$39,687) on Wednesday, slashing its price by nearly a third from the pre-order price of 399,800 yuan.
The cut “surprised the market”, Citigroup analysts said in a report on Wednesday, adding that the new model’s monthly sales would grow to 8,000 to 9,000 units, taking market share from Li Auto’s L8, Lynk & Co’s model 900, and the Aito M8.
With multiple electric vehicle (EV) makers approaching model refreshes, there would be “further price cuts or upgraded feature offerings across the segment”, said Jeff Chung, analyst with the US bank, in the report.
Amid a general sales decline owing to reduced subsidies this year, electric SUVs have shown resilience. The segment’s first-quarter retail sales dipped 1.2 per cent from a year earlier to 1.13 million units, while total EV sales slumped 21 per cent to 2.4 million units, data from the China Passenger Car Association (CPCA) showed.
Six-seat SUVs, in particular, were expected to be a key growth driver for the industry, said Tim Hsiao, head of the Greater China auto and shared mobility research team at Morgan Stanley, in an earlier interview.
Dozens of Chinese carmakers, including BYD and Nio, launched six-seat SUVs around the Beijing Auto Show last month, mounting a challenge against traditional luxury SUV leaders including Mercedes-Benz, BMW and Audi.
“It is a trend that carmakers are cutting prices amid the sticky market competition,” said David Zhang, general secretary of the Shanghai-based International Intelligent Vehicle Engineering Association.
But Zhang predicted that this round of price cuts would not be as fierce as previous rounds in the past two years, given the ongoing anti-involution campaign initiated by Beijing to reduce damaging price competition, as well as cheaper components amid technological advancements.
Rising costs for memory chips and battery minerals were putting carmakers under pressure, which would also act against price cuts, Zhang noted.
Moreover, Zhang said it was common for carmakers to set presale prices at high levels, only to cut them to please would-be buyers when sales actually began.
Indeed, Xpeng is not the first EV maker to slash a presale price in time for the official launch of a new model. For example, Li Auto slashed the price of its L9 SUV by about 10 per cent upon its sales launch on May 15.

Citi said Xpeng’s GX was now priced on par with Lynk & Co’s 900 and higher than Leapmotor’s D19.
The SUV will come in both a pure-electric version and a so-called extended range EV (EREV) variant, which carries a larger battery pack as well as a small petrol-powered engine that can recharge the battery but does not drive the wheels.
The new model “delivers superior craftsmanship and feature content” than cheaper models from rivals like Leapmotor, according to Citi.
Xpeng shares rose nearly 10 per cent during morning trading on Thursday, ending the day up 4.4 per cent at HK$60.50.
A top executive of Nio suggested this week that carmakers must prioritise profitability as material costs climb.
Senior vice-president Ji Huaqiang, in charge of manufacturing, logistics and operations, told reporters on Tuesday that perennially operating at a loss would be detrimental for any carmaker, even in the pursuit of market share.
Nio is set to start selling its full-size pure electric ES9 SUV at the end of this month, with a price tag of 528,000 yuan.


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Does Xpeng’s 33% cut on its new 6-seat SUV portend a price war in the premium segment?

He Xiaopeng, co-founder and CEO of Xpeng, speaks during a launch event for the GX SUV in Beijing on Wednesday. Photo: Reuters

A person checks the interior of Xpeng’s GX during a launch event in Beijing on Wednesday. Photo: Reuters

Xpeng’s GX SUVs on display before a launch event in Beijing on Wednesday. Photo: Reuters

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The NIO ES9 on display during the opening day of the Beijing Auto Show in Beijing on April 24, 2026. Photo: AFP

Morgan Stanley analyst Tim Hsiao, pictured at the company’s office in Kowloon on May 6. Photo: Eugene Lee

Six-seater vehicle sales in China are expected to reach 2 million units this year, a year-on-year growth of around 33 per cent, according to Morgan Stanley. Photo: Reuters

Nio slams EV price wars in China as costs surge, defying cuts by rival Li Auto

A Li Auto L9 is displayed at the auto show in Beijing on April 24. Photo: AFP

Nio’s ES9 SUV is seen at an auto show in Beijing last month. Photo: Reuters

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Li Auto’s flagship L9 SUV is displayed at the ongoing Auto China in Beijing. Photo: Reuters

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The slashed price on the GX model ‘surprised the market’ in a segment carmakers have high hopes for amid slumping EV sales


The slashed price on the GX model ‘surprised the market’ in a segment carmakers have high hopes for amid slumping EV sales.


Does Xpeng’s 33% cut on its new 6-seat SUV portend a price war in the premium segment?

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The slashed price on the GX model ‘surprised the market’ in a segment carmakers have high hopes for amid slumping EV sales

The slashed price on the GX model ‘surprised the market’ in a segment carmakers have high hopes for amid slumping EV sales