Chinese automakers launch 542 new models in five months

Chinese automakers are launching new vehicle models at an unprecedented rate to maintain sales levels amidst a declining domestic market. According to BYD Executive Vice President He Zhiqi, 542 new models were introduced in China between January and May, averaging approximately 3.6 new models per day.

This intense competition has led to specific days, such as July 16, being dubbed ‘Crazy Thursday’ because at least six manufacturers released new vehicles simultaneously. Despite the surge in new product launches and a boom in exports, the Chinese domestic market has seen a significant downturn. Total sales have decreased by 21%, while new energy vehicle (NEV) sales have dropped by 13%, partly due to changes in tax incentives.

Industry executives acknowledge that this pace is difficult to sustain. Developing a single new model can require years of work and an investment of approximately 1 billion yuan (around 130 million euros). The rapid influx of products means the initial sales excitement for any new model often lasts less than three months before being overshadowed by the next release.