Summary of Key Points
At the 2026 Chengdu Auto Show, numerous domestic brands showcased new "box-shaped" or rugged SUV models (more than 10 in total), while some joint-venture brands were absent. This trend is driven by the explosive growth of the off-road vehicle market: sales surged from 880,000 units in 2024 to over 1.3 million units in 2025. Automakers have transformed off-road vehicles from specialized tools into versatile models suitable for both urban commuting and light off-road activities, with prices dropping to the 90,000 RMB range, making them affordable to the general public. However, as more brands enter the market, what was once a "blue ocean" is rapidly turning into a highly competitive "red ocean."
Detailed Analysis
1. Why Did Domestic Brands Flock to the Chengdu Auto Show?
Domestic brands such as BYD, Chery, and Changan exclusively occupied exhibition halls at the Chengdu Auto Show, focusing on showcasing their new box-shaped or rugged SUV models, including the BYD Fangzhengbao Ti9, Hongqi G919, and Shenlan G318. The reason is simple: the off-road vehicle market has been booming in the past two years, with sales increasing significantly from 880,000 units in 2024 to 1.3 million units in 2025. The domestic automotive market has been highly competitive, especially in the segments of passenger cars and ordinary SUVs, prompting automakers to seek new growth opportunities. The success of the BYD Fangzhengbao Ti7 (with over 20,000 units sold in July, accounting for half of the brand's total sales) has inspired other brands to join in.
2. The Evolution of Off-Road Vehicles
Traditional off-road vehicles were perceived as large, heavy, and fuel-intensive, suitable only for rugged terrains. However, automakers have redefined these vehicles to be more comfortable and intelligent, suitable for both urban use and light off-road activities. For example, the Xiangjie G9 features L3-level autonomous driving, and the Shenlan G318 is designed for both urban commuting and long-distance routes like the Sichuan-Tibet route. Data supports this shift: 70% of rugged SUV owners use their vehicles for less than 500 kilometers per year, and 64.8% use them no more than twice a month. In essence, consumers are looking for versatile vehicles that can be used for occasional off-road adventures and daily commuting.
3. Price Drops: Affordable Rugged SUVs
Previously, off-road vehicles could cost hundreds of thousands of RMB (such as the Toyota Prado), but now prices have dropped to the 90,000 RMB range (for example, the Beijing Off-road BJ30 is available for 99,900 RMB). This reduction is due to technological advancements and cost-effective mass production. For instance, BYD's DMO hybrid platform makes off-road vehicles more fuel-efficient, and electric-controlled four-wheel drive systems have become more affordable due to mass production. As a result, off-road vehicles have become more accessible to the general public. However, the competition in the 100,000-200,000 RMB price range has intensified, with some brands (like the Xiangjie G9, priced at 549,800 RMB) seeking to differentiate their products through higher-end features to avoid price wars.
4. From Blue Ocean to Red Ocean
What was once a niche market is now crowded with over a dozen brands. The BYD Fangzhengbao series was among the first to enter the light off-road market and reaped benefits. However, other brands, such as GAC Trumpchi, Huawei, Geely, and Changan, have also introduced similar models, covering a wide range of prices. This has intensified competition. BYD officials have noted that the number of box-shaped SUV models is increasing, indicating that differentiation (such as intelligent driving, design, and cost-performance) will be crucial for survival in this market.
5. Electrification and Intelligence Drive the Change
The key to the transformation of off-road vehicles is technological innovation. Electrification (hybrid and electric technologies) makes them more fuel-efficient and quieter, reducing operating costs. Intelligence (L3 autonomous driving and smart infotainment systems) makes them more convenient for urban use, reducing the need for experienced drivers. These advancements have expanded the use cases of off-road vehicles beyond just off-road activities, making them more versatile and appealing to a broader audience.
Conclusion
Off-road vehicles are no longer exclusive to a niche group; they have become versatile vehicles that ordinary people can afford. However, with the entry of more brands, the competition in this market is just beginning. Would you consider purchasing a box-shaped SUV?