Chinese electric vehicle (EV) startups are adding brands to cover more price points.

Analysts said the strategy can sharply raise spending on product development, sales channels, and marketing as China’s EV price war keeps pushing vehicle prices down.

Leapmotor, a Hangzhou-based EV maker, said in mid-May that it plans a second brand for vehicles priced above 300,000 yuan (US$44,000), with a separate sales network and an official launch in the middle to latter half of 2027.

The move would extend a portfolio that focused on lower-priced segments and only recently moved upmarket with its D19 sport utility vehicle, priced at 219,800 to 269,800 yuan (US$40,000).

Leapmotor founder Zhu Jiangming also said developing a single new model costs at least 1 billion yuan (US$147 million), highlighting the capital required even before building a standalone brand network.

Separately, Xiaomi was rumored to be planning a second auto brand, possibly called Skynomad, for extended-range family SUVs in the second half of 2026, positioned slightly below its main EV brand.

Nio offers a recent cautionary example. The Chinese EV maker moved to reduce costs by integrating Onvo and Firefly more tightly into group management after Onvo’s first model delivered weaker-than-expected performance.

🔗 Source: China Daily