The automotive industry ignited a fierce 'price war' in May, with 76 car models experiencing substantial price reductions over an eight-day period. Numerous automakers embarked on a fresh wave of discounting. Among them, Chery stood out with the most aggressive price cuts. Despite being the last to announce, Chery currently offers the largest number of discounted models, with up to 39 models and savings of up to RMB 55,000!

On May 20th, FAW Hongqi announced a limited-time 'one-price' promotion for the 2025 model of Hongqi H9, starting at RMB 235,800, representing a reduction of up to RMB 94,000 across all variants.

Three days later, on May 23rd, BYD introduced limited-time subsidies for 22 intelligent driving models across its Dynasty and Ocean networks. Dynasty models received discounts ranging from RMB 13,000 to RMB 32,000, with prices starting at RMB 63,800. Post-discount, Ocean network models were priced even lower, starting at RMB 55,800. Notably, the Sea Lion 07 DM-i Intelligent Driving Version (1.5L 125km Elite) saw a direct price reduction of RMB 53,000.

Following suit, GAC Aion implemented a one-price policy, offering reductions of up to RMB 35,000 on 4 models. The second-generation Aion V and Aion Y saw the largest reductions, both with direct price cuts of RMB 35,000, priced at RMB 94,800 and RMB 68,000, respectively.

On May 25th, another player joined the 'one-price' fray – the premium joint venture brand Cadillac. The 2025 model of XT4, available with full payment (Urban, Luxury, and Prestige trims), now has a one-price ranging from RMB 159,900 to RMB 189,900, a decrease of approximately RMB 60,000 to RMB 80,000 compared to the official guide price.

On May 26th, Geely Automobile launched the 'Million Galaxy Limited-time Subsidy Price' campaign, offering direct cash subsidies of up to RMB 18,000 on 7 models. The Geely Xingyuan, as the brand's entry-level model, can now be purchased starting at RMB 59,800, down from the original guide price of RMB 68,800.

On the same day, SAIC-GM and IM Motors LS6 also introduced a 'one-price' policy. SAIC-GM's Buick Envision and Buick LaCrosse models now have one-prices starting at RMB 169,900 and RMB 159,900, respectively. To further bolster sales, these models will introduce new discount measures during the '618' shopping festival.

The IM Motors LS6 has a limited-time one-price starting at RMB 194,900, a direct reduction of RMB 45,000 compared to the official guide price of RMB 239,900.

On May 27th, Chery Automobile announced that its four major brands – Chery, EXEED, JETOUR, and iCar – have comprehensively launched limited-time discount subsidy activities for 39 models, with maximum price reductions of up to RMB 55,000. The Tiggo 3x Excellence Edition, with a guide price of RMB 57,900, now has a limited-time price starting at RMB 34,900 after deducting factory discounts, factory trade-in subsidies, and national trade-in/scrapping subsidies.

These price reductions by automakers are purely promotional strategies aimed at 'trading price for volume'. For consumers, it eliminates the need for price comparison tactics, enhancing car purchasing efficiency by over 50%. For automakers, while this boosts sales, it also severely tests their profitability, stress tolerance, and dealers' inventory management capabilities.

In the long run, excessive 'price wars' could hinder subsequent inventory release and the high-quality development of China's automotive market.