Leapmotor's Zhu Jiangming: Automakers Can't Sell at a Loss—Price Wars Must Return to Rationality

In a recent interview with People's Daily, Zhu Jiangming, founder of Leapmotor, stated that automakers "must never sell cars at a loss" and must maintain reasonable gross margins. He emphasized that through market-driven competition, companies should enhance product competitiveness and cost control to achieve a win-win outcome for both the industry and consumers. Zhu predicted that over the next three to five years, new energy vehicles (NEVs) will account for 80% to 90% of China’s auto sales, highlighting vast global market potential. He also stressed that companies should focus on technology and products rather than overly relying on the personal popularity of their executives. Although brands such as Xiaomi, Tesla, and Wuling launched aggressive promotional campaigns—including low-interest financing and subsidies—in early 2026, the industry as a whole has become more rational. According to data from the China Passenger Car Association (CPCA), the number of new vehicle price cuts in 2025 dropped significantly, indicating improved market order. Meanwhile, the NEV purchase tax exemption policy has been adjusted from full exemption to a 50% reduction, and subsidy policies have shifted toward being allocated based on a percentage of the vehicle’s price.