Behind this trend lies the rapid maturation of the industry chain and a continuous decline in technology costs, allowing advanced driving functions to quickly move from the high-end segment to more affordable levels, said Zhang Hong, a senior NEV industry expert at the China Automobile Dealers Association.

"Chinese brands are offering longer driving range, more advanced intelligent features and higher safety standards at more competitive prices," Zhang said.

"This is prompting consumers to rethink 'cost-effectiveness' — shifting away from simply seeking the lowest price toward a better balance between overall performance and cost."

For example, China's tech heavyweight Huawei announced late last year that its Qiankun ADS Pro enhanced version will officially support urban navigation cruise assist functions in the first quarter of 2026, with plans to bring these advanced capabilities to models priced around 150,000 yuan ($21,500) this year. Previously, such high-level ADAS features were largely limited to premium models priced above 300,000 yuan.

Meanwhile, its entry-level Qiankun ADS SE has already been widely deployed in the 150,000 yuan segment, and with further technology diffusion, the company may explore even lower price ranges in the future, Jin Yuzhi, CEO of Huawei's intelligent automotive solutions business unit, said at a product launch event in November.

Similarly, the country's major NEV maker BYD recently said it had pushed its God's Eye ADAS technologies — part of its "intelligent driving for all" strategy — down to models priced as low as around 70,000 yuan through technological upgrades and cost optimization.

By the end of November 2025, more than 2.3 million vehicles equipped with the God's Eye assisted driving system had gone on the road, generating over 150 million kilometers of driving data every day, BYD data showed.

According to Zhang of CADA, effective cost control stems from China's world-leading electric vehicle industry chain, which fully covers batteries, motors, electronic control systems, vehicle manufacturing and components supply.

"Through close cooperation with upstream and downstream partners, domestic companies have achieved coordinated development across the industry chain, effectively improving production efficiency and quality control," Zhang said.

"This industry chain advantage enables NEV makers to respond quickly to market demand, reduce costs and enhance competitiveness in the global market," he added.