China’s EV makers have launched new discounts and financing deals in early 2026 as growth slows and competition intensifies.

BMW cut the price of its i7 M70L EV in China by 16% to under 1.6 million yuan (US$225,000), and reduced prices across other EV and petrol models by at least 10%.

Xiaomi, which entered the EV market in 2025, is offering a two-month promotion for its YU7 SUV with three years of zero-interest financing.

Zhang Yichao of AlixPartners said the price war may last one to two years as EV adoption slows, with carmakers relying on subsidized loans and low-priced models with advanced driver-assistance features.

CPCA data shows new energy vehicles accounted for 59.3% of passenger car sales in November 2025, but growth has eased.

Average EV selling prices fell 11.7% in the first 11 months of 2025, adding pressure on margins despite Beijing calling for restraint.

🔗 Source: South China Morning Post

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