Denza's Price Cuts Propel it Back to the Top Spot
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The landscape of the MPV (Multi-Purpose Vehicle) market in China is experiencing noteworthy transformations, reflecting broader trends in consumer preferences and the competitive dynamics among key automotive playersAccording to the latest statistics from the China Passenger Car Association (CPCA), MPV sales in January registered a decline, reaching 78,000 units—a drop of approximately 15% compared to the previous yearIn a striking shift, of the top ten selling models in this segment, local brands captured seven spotsAmong them, the Tengshi D9 took the lead in monthly sales, boasting significant price reductions from the 2024 model version, effectively reasserting its dominanceMeanwhile, BYD's Xia made its debut in the top ten sales rankings.
This environment signals a pivotal moment for MPV manufacturers, primarily influenced by the competitive edge introduced by plug-in hybrid vehicles (PHEVs). January saw five PHEV models, including the Tengshi D9, Lantu Dreamer, BYD Xia, Buick GL8 PHEV, and GAC Trumpchi E8 PHEV, making it to the top 15 best-selling vehiclesNotably, as an important sub-segment of the passenger car market, the MPV industry is increasingly prioritizing smart technology and connectivity features in its product offerings.
A key factor in the resurgence of the Tengshi D9 can be attributed to its aggressive pricing strategy for the 2024 model, which was promoted through substantial discountsVisits to several Tengshi direct-sales outlets revealed that the brand was quick to clear out its inventory following the relaunch of the 2025 modelRemarkably, some models of the 2024 Tengshi D9 saw discounts as high as 110,000 yuan, with the front-wheel-drive versions reduced by 74,000 yuan and all-wheel-drive versions by 54,000 yuanThese price cuts have driven the effective starting price for the 2024 Tengshi D9 down to around 300,000 yuan.
The market dynamics have been anything but stable, particularly since September of the previous year, when the Tengshi D9 lost its top-selling status for four consecutive months
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During this tumultuous period, the sales rankings of the top ten MPV models fluctuated frequently, especially within the price range of 200,000 to 300,000 yuanFor instance, in January, models like the Buick GL8, Lantu Dreamer, Wuling Zhengcheng, Grevia, and GAC Trumpchi M8 filled the positions from three to seven, each selling approximately 5,000 units.
However, models that had previously secured a place among the top ten, such as the Zeekr 009, Odyssey, and Buick GL8 PHEV, have seen their rankings slip to the tenth to fifteenth positionsIn response to the disappointing sales figures, automakers and dealerships are strategically lowering prices to rejuvenate consumer interestFor example, the GAC Trumpchi E8 PRO+ was introduced at a limited-time fixed price in the 200,000 yuan range, while the Buick GL8 Roadmaster PHEV activated a time-sensitive 20,000 yuan subsidy for the Lantern FestivalIn an effort to stimulate sales, the Odyssey also experienced a markdown of up to 70,000 yuan.
A sales executive from a notable new energy vehicle firm highlighted that the present intensity of competition in the domestic MPV sub-segment is relatively moderate compared to other automotive categoriesThe market share is predominantly divided among four product types: the Japanese Grevia and Sienna, the American Buick GL8, the domestic fuel models from GAC Trumpchi, and the domestic plug-in hybrid models like the Tengshi D9. This market structure has been shaped by long-standing brand strategies, product positioning, and technological advancementsJapanese brands, leveraging their expertise in engine technology and perceived reliability, have managed to carve out a significant space in the MPV marketMeanwhile, American brand Buick GL8, with its spacious design, comfortable travel experience, and robust brand reputation, remains a sought-after choice for business transportDomestic brands, on the other hand, are rapidly evolving in the realm of new energy technology, allowing models like the Tengshi D9 to elevate their presence swiftly.
Reflecting further on the trends observed in 2024, the retail sales of MPVs reached 1.088 million units, exhibiting a slight year-on-year decrease of 0.5%. In comparison, the sales and market share of sedans and SUVs surpassed that of MPVs and showed a consistent upward growth trend over the same period
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