Optional Smart Driving Packages Drive Price Hikes as EVs Enter a Pricing-Up Cycle

[Market Watch] Optional smart driving packages have become automakers' new lever for price increases, as the industry shifts its pricing strategy amid mounting profit pressures.

Key Trend: Smart Driving Options Emerge as a De Facto Price Increase Tool

Facing relentless market competition and shrinking profits, multiple automakers are transitioning advanced smart driving features from standard equipment to paid optional add-ons, effectively raising vehicle prices at the point of sale. In Q1 2026, the total profit of the automotive industry amounted to just RMB 78.4 billion, down 18% year-over-year, with the sales profit margin falling to 3.2%.

Industry Impact: Price Wars Become Unsustainable, Giving Way to Value Competition

As consumers now demand near-perfect product performance, automakers are compelled to adopt modular pricing strategies to preserve gross margins. High-cost configurations—such as smart driving systems and charging infrastructure ecosystems—are shifting from being standard inclusions driven by competitive pressure to optional, pay-as-you-need features. This transition marks the new energy vehicle market’s evolution from a price war phase into a value-driven competition era.