Intense Competition in the B-Class Plug-In Hybrid Sedan Market: A New Price War Emerges

The B-Class Plug-in Hybrid Sedan Market: A Competitive Battleground

According to a recent statement from a salesperson at BYD in Shanghai, “The price for domestically produced B-Class sedans has now reached the 80,000 yuan range, which was previously unimaginable.” The competition in this segment has become extremely fierce.

As mentioned by the BYD salesperson, the B-Class sedan market is undergoing a new wave of “price wars.” Recently, the Roewe M7 DMH was launched with a limited-time price range of 85,800 to 102,800 yuan, positioning itself to challenge the market for plug-in hybrid sedans priced around 100,000 yuan. In this niche market, competitors like the BYD Qin L and Galaxy A7 are also eyeing the opportunity, with both models starting at around 80,000 yuan.

There is a saying in the industry that “whoever dominates the B-Class cars will rule the market.” This intense competition not only affects market shares within this segment but also indicates that domestic brands are increasingly competing with joint ventures by leveraging advantages in pricing, technology, and smart configurations, thereby reshaping the market landscape.

B-Class Plug-in Hybrid Sedan: A Three-Way Battle

In response to the Roewe M7 DMH’s launch, its competitors are not sitting idly by. “With the upcoming National Day holiday, we also have promotional activities. The official price of the 2025 BYD Qin L DM-i Intelligent Driving Edition is 99,800 yuan. We are now offering a cash discount of 10,000 yuan along with an additional 2,000 yuan local government subsidy, bringing the actual price down to 87,800 yuan. If there’s a trade-in, we can negotiate further,” said the BYD salesperson.

A salesperson from Geely Galaxy revealed, “The starting price for the Galaxy A7 is 89,800 yuan, and the actual terminal price is around 81,800 yuan.” The BYD Qin L and Galaxy A7 are becoming the hot picks in the B-Class plug-in hybrid sedan market. The former has an official price range of 99,800 to 153,800 yuan, with monthly sales between 16,000 and 20,000 units. According to data from Dongche Di, the BYD Qin L consistently ranks alongside its sibling model, the Qin PLUS DM, as the top two in the plug-in hybrid sedan segment. The Galaxy A7’s official price ranges from 89,800 to 125,800 yuan, and after its August launch, it achieved monthly sales of 12,000 units, ranking fifth in the plug-in hybrid sedan category.

Focusing solely on the B-Class plug-in hybrid sedan market, the BYD Qin L and Galaxy A7 emerge as strong competitors to the Roewe M7 DMH. Initial feedback indicates that the Roewe M7 DMH has already received over 10,000 orders in its first week of pre-sales, suggesting a potential trinity of competition among the BYD Qin L, Galaxy A7, and Roewe M7 DMH.

“This vehicle truly reflects our understanding of what users want and what they aspire to. The all-new Roewe M7 DMH aims to provide consumers with the experience of a 200,000 yuan B-Class car for a price around 100,000 yuan,” said Yu Jingmin, Executive Deputy General Manager of SAIC Passenger Cars, during an interview. He is confident that the sales of the Roewe M7 DMH “will not be poor” based on its product design.

A dealer for Roewe also expressed optimism about the new car’s pricing, stating that it “is already in line” and predicting a positive performance in the terminal market for the Roewe M7 DMH.

Domestic Brands Competing for Market Share

The B-Class sedan segment is large and profitable, having been dominated by joint venture brands for a prolonged period. However, domestic brands are now actively seizing market share in the B-Class sedan sector, especially in the plug-in hybrid segment, with models like the BYD Qin L, Galaxy A7, and Fengyun A9L frequently topping sales charts.

Qian Yang, General Manager of the Roewe Brand Division, stated that this is the result of continuous enhancements in technology and service by domestic brands. “The competition in this segment is extremely fierce. Consumers choosing plug-in hybrid models primarily look at battery range, fuel efficiency, and vehicle reliability, so we must excel in these three aspects.” For instance, the Roewe M7 DMH features SAIC’s self-developed DMH 6.0 Super Hybrid System, offering a pure electric range of 160 km and a comprehensive range exceeding 2,100 km.

Joint venture brands are also introducing plug-in hybrid models in the B-Class sedan market, such as the Accord e:PHEV and Passat PHEV. Price-wise, these vehicles generally fall within the 200,000 yuan range. Monthly sales for these models remain in the hundreds.

“In the high-end sedan market, Japanese and other joint venture brands are shrinking, while domestic brands are rapidly rising,” noted Cui Dongshu, Secretary-General of the Passenger Car Market Information Joint Conference.

In addition to pricing, which is a strong advantage for domestic brands, intelligent configurations have become crucial in appealing to modern consumers. “The craftsmanship and quality of domestic brands have matured significantly. More importantly, the intelligent driving and cabin configurations of domestic brands are often superior to those of joint ventures, making them more appealing to consumers,” added the BYD salesperson.

“The Roewe M7 DMH features a first-ever global release of a deep AI dialogue model, capable of conducting in-depth conversations via AI. Currently, smart connected devices require wake-up phrases, but we aim to innovate. We want the onboard system to always be attentive and ready to serve users,” stated Yu Jingmin.

Positive Outlook for the Plug-in Hybrid Market

Data from the Passenger Car Market Information Joint Conference shows that in July 2022, B-Class plug-in hybrid sedan sales reached 9,925 units, with monthly sales below 10,000 units, accounting for 2% of that month’s new energy vehicle market share. By July of this year, B-Class new energy sedan sales soared to 124,000 units, making up 12.6% of the overall market share. Although specific figures for plug-in hybrid sedan sales have not been disclosed by the conference, the rapid growth in sales over the past two years has seen popular models achieving monthly sales as high as 20,000 units.

However, unlike the previous period of rapid growth, the sales growth rate for plug-in hybrid models has recently begun to slow. In August, domestic plug-in vehicle sales hovered around 310,000 units, marking an 8% decline year-on-year. Dongxing Securities’ research report suggests that while the overall automotive market trend remains strong, different types of powertrains are experiencing divergent trends. Pure electric models are seeing high sales growth, while sales growth for plug-in and range-extended models are slowing. This shift is largely due to subsidy policies that have increased the proportion of smaller pure electric models, leading to a decline in the share of higher-priced hybrid and range-extended vehicles.

Looking ahead, industry insiders maintain a positive outlook for the future of plug-in hybrid models. “During daily commutes, pure electric vehicles eliminate concerns about charging on highways, but during peak travel times, consumers experience the challenges of long charging queues. Given such scenarios, hybrid and fuel vehicles will continue to coexist in the market structure and maintain a certain share, although the exact structural proportions are still uncertain,” stated Shao Mingfeng, Chief Brand Officer and General Manager of the Sales Company at Lantu Automotive.

Notably, expanding into international markets has become another growth avenue for plug-in hybrid models. Data from the Gaishi Automotive Research Institute shows that in the first half of this year, exports of plug-in hybrid passenger cars doubled, with a year-on-year increase of 165%, positioning them as a new growth engine, surpassing pure electric vehicles. Dongxing Securities’ report indicates that due to varying levels of charging infrastructure development overseas, plug-in hybrids are gaining market traction owing to their better economy and intelligent features compared to fuel vehicles.

During a recent industry forum, Xu Changming, former Deputy Director of the National Information Center and a senior economist, highlighted that since 2021, sales of hybrid vehicles in China have experienced remarkable growth, with an annual growth rate of at least 50%, rising from less than 1 million to nearly 6 million units. This surge is primarily attributed to the rapid growth of plug-in hybrids and range-extended vehicles. The share of plug-in hybrids among hybrid vehicles has consistently increased, reaching 62.6% last year and 62.7% in the first four months of this year. In the next two to three years, plug-in hybrid models are expected to continue their strong development and may even temporarily surpass pure electric models in market share.