Leapmotor (零跑)'s 'Half-Price' Curse

Leapmotor (零跑) is facing a bruising moment in China’s cutthroat EV market as it contends with what industry observers are calling a “half-price” curse — steep, headline-grabbing discounts that threaten margins and brand credibility. According to TMTPost, it has been reported that some of the company's models are being offered at discounts large enough to be described as half-price, fueling customer anger and investor unease. How did a once-promising challenger get backdropped by a wave of forced discounting?

Price cuts and consumer backlash

Reportedly, the discounting is driven by inventory pressure, slowing demand and intense competition from incumbents such as BYD (比亚迪) and rival startups. Customers who paid higher prices earlier are vocal on social media and forums about perceived loss of value, and industry analysts warn that repeated price slashes can damage a brand’s pricing power for years. Leapmotor’s marketing campaigns and after-sales assurances are now being tested in real time as the company tries to balance clearing stock with protecting its reputation.

Market pressures and geopolitical backdrop

China’s EV space has quickly shifted from subsidy-fueled growth to a brutal, margin-focused fight for market share. The broader backdrop includes fading government subsidies, an oversupplied dealer and factory pipeline, and geopolitical tensions that have complicated supply chains and access to chips and advanced components — factors that squeeze smaller players hardest. It has been reported that these pressures are forcing many startups to either double down on differentiation (software, services, export markets) or scale back production to survive.

Leapmotor’s path forward will require a careful mix of pricing discipline, product differentiation and better inventory management. Investors and consumers will be watching whether the company can stop the price slide without triggering a deeper earnings crisis — or whether the “half-price” label becomes standard industry shorthand for a failed growth pivot.