Mainstream Automakers See Rising Average Prices in Q1 as Price Wars Fade, Shift to Tech Competition

In Q1 2025, average transaction prices for mainstream automotive brands rose across the board compared to previous years: Great Wall Motor reached RMB 167,600, BYD stood at RMB 160,000, SAIC Motor recorded RMB 142,400, and Geely Auto came in at RMB 118,100. During the same period, the market penetration rate of new energy vehicles (NEVs) exceeded 60%. Great Wall Motor elevated its average selling price through off-road models and premium NEV offerings, with its Tank series performing exceptionally well in outdoor and long-distance travel segments. SAIC Motor leveraged its strong portfolio of self-owned brands, NEV strategy, and overseas market synergy, achieving overseas sales of 325,000 units in Q1—a 48.3% year-over-year increase—with higher-priced export models contributing significantly to its overall average transaction price. Geely Auto focused its core products on the RMB 80,000–150,000 family-oriented segment; its Galaxy series and “China Star” ICE models gained strong consumer acceptance thanks to their design, cabin experience, intelligent features, and performance, supporting Geely’s average pricing level. The auto industry’s average profit margin has now declined to 3.2%. An increasing number of consumers are basing purchase decisions less on terminal discounts and more on core product capabilities—such as electrification systems (battery, motor, and electronics), intelligent driving features, and charging efficiency. For instance, key order-driving factors now include blade batteries that remain non-flammable during nail penetration tests, 9-minute fast-charging capability, and advanced intelligent driving systems supporting OTA updates. Automakers are shifting resources toward building out charging infrastructure and deploying urban NOA (Navigate on Autopilot) capabilities. Consumer attention has moved beyond price sensitivity to practical user experiences—such as residential charging accessibility and intelligent driving performance in complex traffic scenarios. Consequently, competitive focus in the market is transitioning from discount depth to comprehensive dimensions including range, charging convenience, intelligent driving, and after-sales service.