- Discount Details: Attractive Offers Until Early June
- Market Context: Rising Competition and the "Price War"
- Companies’ Motives: Boosting Sales and Clearing Inventory
- Impact of Discounts on Market and Consumers
- Future of the "Price War" in China’s Auto Market
Competition in China’s electric vehicle market continues to heat up as Geely Galaxy — the sub-brand of Geely Auto — announces widespread price discounts on seven of its most popular models. This move comes amid the escalating "price war" among leading Chinese companies, as each brand seeks to increase its market share and attract more customers in the rapidly growing electric and hybrid vehicle segment.
Discount Details: Attractive Offers Until Early June
Geely Galaxy announced limited-time offers valid until June 1, 2025, covering seven key models, mostly from the economical segment targeting a broad range of consumers. Notable models include:
Xingyuan: New starting price after discount is 59,800 yuan (approx. 30,500 AED / 8,320 USD), down 9,000 yuan from the official price of 68,800 yuan (approx. 35,100 AED / 9,740 USD), a 13.08% reduction.
L6 EM-i: New price is 69,800 yuan (approx. 35,600 AED / 9,720 USD), down 10,000 yuan from the original 79,800 yuan (approx. 40,700 AED / 11,090 USD), a 12.53% cut.
Starship 7 EM-i: Price reduced to 79,800 yuan (approx. 40,700 AED / 11,110 USD), after a 18,000 yuan (approx. 9,200 AED / 2,530 USD) discount, or 18.40%.
E5: New price 89,800 yuan (approx. 45,800 AED / 12,500 USD), down 18,000 yuan (approx. 9,200 AED / 2,530 USD), a 16.7% reduction.
L7 EM-i: New price 99,800 yuan (approx. 50,900 AED / 13,890 USD), down 16,000 yuan (approx. 8,200 AED / 2,290 USD), a 13.82% cut.
Starshine 8: Reduced to 115,800 yuan (approx. 59,000 AED / 16,120 USD), down 10,000 yuan (approx. 5,100 AED / 1,400 USD), a 7.95% discount.
E8: New price 134,800 yuan (approx. 68,800 AED / 18,770 USD), after a 15,000 yuan (approx. 7,650 AED / 2,090 USD) discount, a 10.01% reduction.
Additionally, customers who purchase the Xingyuan model through the trade-in program receive an extra 3,000 yuan (approx. 1,530 AED / 420 USD) subsidy from Geely Galaxy, plus a government subsidy of up to 20,000 yuan (approx. 10,200 AED / 2,730 USD), making the offer even more attractive for those seeking an affordable electric car.
Market Context: Rising Competition and the "Price War"
Geely Galaxy’s move follows BYD’s announcement of significant discounts on its economical models within the "Ocean" and "Dynasty" series, where the Seagull model’s price dropped to 55,800 yuan (approx. 28,500 AED / 7,770 USD) for a limited time, a reduction of over 20% from the official price. Other companies such as IM Motors and Leapmotor have also announced similar discounts on their models, confirming that the Chinese market is witnessing a real race to offer the best value for money.
Wall Street analysts believe this wave of discounts could push more companies to take similar actions, especially in the economical electric vehicle segment, which forms the backbone of China’s EV sales.
Companies’ Motives: Boosting Sales and Clearing Inventory
Through these offers, Geely Galaxy aims to boost sales amid increasing competition and slowing growth in some market segments. It also seeks to clear accumulated inventory at dealerships and benefit from government incentives aimed at encouraging the replacement of traditional cars with more efficient and environmentally friendly electric vehicles.
Moreover, these offers enable a broader segment of consumers to own modern electric cars at affordable prices, especially with growing environmental awareness and ongoing government support.
Impact of Discounts on Market and Consumers
These discounts are expected to significantly increase demand for Geely Galaxy’s cars and competing models, especially as the offer period nears its end. The competition will also encourage consumers to make faster purchase decisions to benefit from lower prices and additional subsidies.
On the other hand, these discounts may affect companies’ profit margins, pushing them to focus on increasing sales volume to compensate for lower per-unit profits.
Future of the "Price War" in China’s Auto Market
Observers believe the current "price war" may continue in the coming months, especially with ongoing government support and companies’ desire to maintain market share. As more local and global brands enter the market, competition is expected to expand beyond price to include smart driving technologies and after-sales services.
Geely Galaxy’s recent discounts highlight the dynamic nature of China’s electric vehicle market, where price competition has become a key tool to attract customers and accelerate the shift toward sustainable mobility. With attractive offers continuing from various companies, Chinese consumers remain the biggest winners during this phase of technological and economic transformation.
