China's Auto Market Launches Aggressive Promotions

Chinese automakers are accelerating new releases and sales as the auto market has entered its "Golden September and Silver October" sales season.

Over 30 brands, such as Tesla, Xiaomi, XPeng, Denza, Leapmotor, AITO, and FAW Toyota, have released September promotional policies covering over 100 models, offering incentives like cash discounts and trade-in bonuses.

Local governments are also rolling out consumer subsidies for vehicle purchasing.

Gansu province allocated a 6 million yuan (US$857,140) fund offering up to 3,000 yuan per vehicle, while Qinghai offers up to 5,000 yuan. Over 30 brands, including Tesla and Xiaomi, have also introduced temporary incentives like cash discounts and trade-in bonuses. Similar subsidies are also offered in Nanjing and Yangzhou in Jiangsu Province, and Qingdao in Shandong Province.

This promotional wave reflects intensifying industry pressure. From January to July 2026, the auto sector's profits fell 20 percent year-on-year to 216.2 billion yuan, with vehicle manufacturing profit margins shrinking to a mere 1.5 percent. The China Passenger Car Association notes that most carmakers are aggressively discounting to meet lagging annual sales targets.

Looking ahead, experts believe intelligent driving technology will become a primary growth driver.

"As smart features transition from premium options to standard equipment, consumer demand for high-tech NEVs is expected to spur structural growth in the market," said Cui Dongshu, secretary general of the association.