Chinese automakers are steering the electric era into a new phase, flooding the market with low-cost EVs and plug-in hybrids at the Guangzhou Motor Show.

With prices starting between 100,001 yuan ($14,100) and 150,000 yuan ($21,100), this new generation of vehicles sends a message that’s hard to miss: China intends to own the mass market for electrification.

Read: The Company That Started The EV Price War Now Says It’s Gone Too Far

According to Nikkei Asia, many of China’s biggest automakers are getting ready to export these budget-friendly newcomers. For Western legacy brands still wrestling with production costs and emissions targets, those prices don’t signal healthy competition so much as the opening act of a global price reckoning.

The Global Push Begins

Several new EV and PHEV models took the stage at the show, among them the Leapmotor A10, which is expected to start around 100,000 yuan ($14,100) and head for export worldwide. The company’s Lafa 5 electric hatchback is set to launch at roughly the same figure.

Nio made a strong impression with its Firefly, shown for the first time in right-hand drive. Priced around 100,000 yuan ($14,100) in China, the Firefly will enter 17 new markets next year, reaching into Central America and beyond. GAC joined in with its Aion i60, a range-extender SUV starting at 109,800 yuan ($15,500).

Price Wars Continue

The Chinese automotive industry has been in a price war for the past few years, and there are no signs of cooling, as carmakers feverishly battle to gain market share. The lower end of the market is proving to be an especially fierce battleground, Nikkei Asia reports.

During the first nine months of this year alone, 2.35 million EVs and plug-in hybrids priced between 100,001 yuan ($14,100) and 150,000 yuan ($21,100) were sold in China. That makes it the nation’s largest market segment, up from fewer than 1.5 million in the same range last year.

By contrast, models priced between 150,001 yuan and 200,000 yuan ($21,100–$28,200) have held steady at around 2.3 million sales.

There has also been significant growth in even more affordable NEVs. The number of vehicles sold in the $11,300 – $14,100 and $11,300-or-less price brackets has doubled to over 1 million units.

While the growing number of affordable models is good for Chinese customers, it’s hurting the automakers themselves. During the July-September quarter, BYD’s net profit fell 30 percent, its first decline in four years. Great Wall saw a similar hit, with profits falling 30 percent despite a 20 percent rise in sales.

Exports, meanwhile, are accelerating. Over the first three quarters of this year, Chinese brands shipped 1.75 million EVs and plug-in hybrids abroad, an astonishing 89 percent increase from the same period last year.

Source: Nikkei Asia

Guangzhou Automobile Group, better known as GAC, is positioning itself to join the growing list of Chinese carmakers setting up shop in Europe to sidestep rising import tariffs. The company has also chosen an established partner to make it happen, teaming up with contract manufacturer Magna to handle production.

GAC has confirmed that its all-electric Aion V will be built at Magna’s facility in Graz, Austria. Over the years, this plant has built several models for a variety of carmakers, including the Mercedes-Benz G-Class, Jaguar I-Pace and E-Pace, BMW 5-Series, BMW Z4, and even the Toyota GR Supra.

Read: Does The New Aion V Electric SUV Remind You Of A T-Rex? GAC Thinks So

Recent changes in client contracts have left Magna with open capacity. Several models, including those from Jaguar, have already departed the Graz lines, while agreements with BMW and Toyota will end next year. As a result, the company has been on the lookout for new manufacturing partners.

How Xpeng Does It

Guido ten Brink/SB-Medien

In September, Magna’s Graz facility began assembling Xpeng’s G6 and G9 SUVs for Europe. The process is somewhat unconventional: the vehicles are built in China, partially disassembled, shipped to Austria, then reassembled for final delivery.

This approach lets Xpeng pay tariffs only on parts rather than complete vehicles, a practical workaround in the current trade climate. Whether GAC’s Aion V will follow the same method remains unconfirmed, though the option certainly seems plausible.

The Chinese company unveiled the Aion V in the second quarter of last year and has been enjoying strong sales in recent months. It is underpinned by the firm’s modular AEP architecture and is equipped with an electric motor producing 181 hp.

Buyers can choose between 62 kWh, 75 kWh, and 90 kWh battery packs, the largest offering a CLTC range of up to 466 miles (750 km).

Global Aspirations

It’s too early to say how popular the Aion V will prove to be in Europe, but it certainly has the potential to sell well and appears to be a compelling alternative to the likes of the Geely EX5 and BYD Atto 3.

GAC plans to launch the SUV in more than 30 global markets, including Australia and various European countries, as it continues to expand its international footprint.