Leapmotor and Chery Enter the Budget EV Market Amid Industry Downturn

[Market Dynamics] Sales of budget electric vehicles have plummeted, yet Leapmotor and Chery are accelerating their entry into this segment.

Core Trend: Intensive New Launches Despite Collapsing Sales

From January to February 2026, sales of entry-level new energy vehicles priced between RMB 50,000–100,000 dropped by over 49% year-over-year, while models under RMB 50,000 saw an even steeper decline of 79%. With the combined pressures of reduced government subsidies, competition from hybrid vehicles, and demand exhaustion from a high prior base, the market’s growth红利 has nearly vanished.

Key Data: Competitive Pricing and Strong Pre-order Performance

The Leapmotor A10 starts at RMB 65,800, featuring a Qualcomm cockpit chip and LiDAR; the Chery QQ3 has already secured over 61,000 blind pre-orders, with a launch price starting at RMB 58,900; the Wuling Bingo S offers a range of 525 km at a price of RMB 86,800.

Strategic Rationale: Betting on Surging Oil Prices to Drive Substitution Demand

Despite short-term headwinds, companies anticipate that soaring oil prices will prompt gasoline car owners to switch to cost-effective pure-electric models, aiming to strike a new balance between intelligent features and affordability.