(Yicai) Dec. 7 -- Chinese carmakers, including Wuling Motors Holdings and Changan Automobile, are bearing down on the foreign joint ventures of Volkswagen and Honda Motor in China's popular market for A-class sedans by slashing prices and introducing affordable hybrids.

Wuling yesterday launched its first ever A-class hybrid sedan, the Wuling Starlight, with a starting price of CNY88,800 (USD12,326) after BYD announced it would lower the prices of its Dynasty series Plus DM-i models. In late October, Changan Auto debuted the Qiyuan A05, a compact plug-in sedan hybrid, for CNY89,800.

In China, A-class sedans are extremely popular compact vehicles that are smaller than mid-sized B-class vehicles.

In the first 10 months of this year, NEVs accounted for 30 percent of all A-class sedans sold in the country, a segment that made up nearly half of total sales, according to data from the China Passenger Car Association. Market analysts predict that NEVs could account for an even larger share of these sedans. 

“Vehicle costs and prices are key factors in the competition," the general manager of a leading car dealership said to Yicai. Plug-in hybrids can even directly impact sales of traditional fuel-powered cars as long as their prices are low enough. As the competition intensifies, Chinese automakers will inevitably start price wars, the GM added.

In October, China's top three A-class sedans were the Volkswagen Lavida, Nissan Sylphy and Volkswagen Sagitar, according to industry data. The BYD Qin Plus DM-i, a plug-in hybrid unveiled by the Shenzhen-based firm in February, came in fourth with sales of more than 25,970. 

As competition grew, prices of the Volkswagen Lavida were cut by CNY26,000 (USD3,640) in Shanghai in October to between CNY74,900 and CNY151,900 (USD10,500 to USD21,300) apiece.

Editor: Emmi Laine