(Yicai) July 29 -- Intense competition in China’s automotive industry is spilling over into the relatively niche off-road vehicle segment, where nearly 20 new models have been launched or entered presales so far this year.

Great Wall Motor unveiled the latest generation of its flagship Tank 300 off-road SUV this month. The Beijing-based firm introduced five variants powered by gasoline, diesel and hybrid power to cater to a wider range of consumer preferences.

Competition is also intensifying in the premium off-road segment. BAIC Group recently launched its new luxury off-road brand “Tai Tan” and started presales of its flagship Tai Tan 700, priced between CNY300,000 (USD44,303) and CNY400,000. The price of Chery Holding Group’s luxury off-road pickup truck, the Zongheng F700, which started pre-sales yesterday, is also in this price range. Meanwhile, China FAW Group plans to release the Hongqi G919 later this year, with a price tag of over CNY400,000.

The influx of new models is reshaping the competitive landscape of China’s off-road vehicle market, eroding the previously dominant position held by Great Wall Motor’s Tank brand. Tank’s sales plunged 10.6 percent in the first half from a year earlier to 92,653 vehicles, according to sales data previously released by the firm.

As competition intensifies, off-road vehicle prices are dropping. Prices for light off-road vehicles have fallen to between CNY100,000 (USD5,300) and CNY200,000, making it the most competitive segment of the market, according to data released by the China Automotive Technology and Research Center.

At the same time, sales of light off-road vehicles priced above CNY200,000 have sharply decreased and the prices of hardcore off-road vehicles are now declining into the CNY200,000-to-CNY300,000 range.

Improved technology and rising sales have given automakers greater pricing flexibility, the research center said.

Editors: Tang Shihua, Kim Taylor