Five years ago, when Li Shufu made a bold promise to create a family sedan priced at just 20,000 yuan, few believed in his vision. Today, that dream has become reality. Geely's new "family sedan" has finally hit the market, making headlines in Tianjin, Chengdu, and Guangzhou with an official price of 29,999 yuan. For Chinese consumers, this wasn’t just the arrival of an affordable car—it marked the dawn of a new era in civilian-oriented car consumption.
The mini-car segment is now in full battle mode, with Geely’s entry acting as a catalyst. The price war has intensified, with competitors like Chevrolet Spark slashing prices by up to 40% and Chery QQ following suit. Sail also launched a major price reduction, dropping its entire range by 20,000 yuan and stirring up the market once again. This means that below the 70,000 yuan threshold, cars like Alto, Xiali, Geely, QQ, Spark, Lobo, Sail, and others are all in the spotlight.
Sail was among the first to benefit from the price war. According to Zhejiang Shentong, a dealer of the brand, over 100 vehicles were sold within just two weeks after the National Day holiday. Meanwhile, the price of Sail has since risen by 5,000 yuan.
Not all brands are willing to fight. Some, like Hafei Lobo and Jiangnan Alto, have been forced into the fray, with some models dropping by 5,000 yuan. Hafei dealers in Hangzhou reported improved sales after the price cuts. Jiangnan Automobile even introduced oil subsidies for users, with the maximum reaching 6,000 yuan.
Faced with Geely’s aggressive pricing, Xiali’s Hangzhou dealer Jintong Company expressed skepticism: “Geely does well in the northern market, but not so much in Zhejiang. This time, their new model under 30,000 yuan in Tianjin won’t pose a big threat here.â€
Meanwhile, Chery found itself struggling against the SPARK. Before September, Chery QQ outsold SPARK tenfold. But with the introduction of the 47,800-yuan SPARK, QQ’s dominance came to an end. A Zhejiang-based Chery dealer revealed that QQ hasn’t had any promotions recently and hasn’t sold a single car since the National Day holiday.
Despite the challenges, the 29,999-yuan sedan has captured consumer attention. In just a few years, the price of a mini car has dropped from nearly 100,000 yuan to around 50,000, and now even below 30,000. Consumers are asking: how low can it go?
Li Shufu remained non-committal when asked about the limits of price cuts. He said it depends on cost control and resource management. “Once we set the price, we will only lower it if we sacrifice product quality,†he said.
Many dealers are frustrated. A Hafei Zhejiang 4S store manager said, “Prices have hit rock bottom, but everyone is cutting prices. If we don’t follow, we lose competitiveness.†Another dealer added, “It’s hard to keep up. Mini-vehicles started the price war last year, and now profit margins are razor-thin. No one can afford to keep fighting.â€
Industry experts believe the price war reflects deeper market shifts. As high-end car prices squeezed the mid-range segment, and mid-range prices pushed down to the low-end, mini-cars are now under pressure to innovate further. However, with already slim profit margins, they’re left with little choice but to compete on price.
The reporter notes that different price adjustments have different implications. While luxury brands like Audi cut profits to offer lower prices, mini-cars are reducing costs instead. But frequent price battles ultimately hurt consumers, as quality may suffer in the long run.
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