Stock Markets May 12, 2026 06:46 AM

Morgan Stanley: Mixed April retail pricing across Chinese EV makers as facelifts lift some models

Facelifts and new launches buoy prices for select models while other lines see pressure, says the bank

By Priya Menon BYD LI XPEV NIO

Morgan Stanley reported divergent retail price movements among leading Chinese electric vehicle manufacturers in April. BYD recorded a modest month-on-month decline, while Li Auto held steady. XPeng and NIO posted gains, and Geely Galaxy recorded the largest increase. The bank highlighted that recent facelifts and upcoming model introductions are underpinning pricing, even as weaknesses persist in some model lines.

Morgan Stanley: Mixed April retail pricing across Chinese EV makers as facelifts lift some models
BYD LI XPEV NIO

Key Points

  • Retail prices among Chinese EV manufacturers diverged in April, with BYD down 0.3%, Li Auto flat, XPeng up 0.6%, NIO up 4%, and Geely Galaxy up 7%.
  • Facelifts contributed materially to price increases for specific models, notably NIO's 5566 and Geely Galaxy's A7, M9, and Starshine 8.
  • Upcoming launches and additional facelifts, such as BYD's Great Tang and Li Auto's L9 Livis, are expected by the bank to help sustain blended pricing.

Morgan Stanley's April retail pricing review of major Chinese electric vehicle makers shows a range of outcomes, from small drops to double-digit increases in specific model lines.

BYD registered a 0.3% decline in retail prices month-over-month in April. The bank said price improvements after facelifts for the Seal 06 and Sea Lion 05 were offset by price declines across other BYD models. Morgan Stanley expects additional facelifts and new model introductions, including the Great Tang, to help support BYD's blended pricing going forward.

Li Auto saw retail pricing remain flat on a month-on-month basis. According to the bank, retail discounts for the L6, L7, and L8 narrowed by 3,000 yuan, while discounts for the i-series stayed below 5%. Pricing for the L9 held steady in April ahead of the imminent L9 Livis launch this week.

XPeng recorded a 0.6% increase in retail prices month-over-month. Morgan Stanley reported that the MONA M03's retail price rose by 6,500 yuan following its facelift, while other XPeng models showed no change. The bank noted that any further price increases at XPeng are likely contingent on the timing and reception of the GX launch.

NIO posted the largest month-on-month gain among the named brands, with retail prices up about 4%. Morgan Stanley attributed this rise primarily to the 5566 facelifts, which lifted prices for each affected model by roughly 10%.

Geely Galaxy experienced a notable rise in retail pricing, climbing about 7% month-over-month. The bank linked this increase to 2026 facelifts for the A7, M9, and Starshine 8, with each of those models' retail prices up by more than 10%.

Morgan Stanley observed that retail prices generally improved after declines in March, a trend it credits to several recent facelifts. The bank also anticipates that additional model launches in the coming months will provide further support to retail pricing across these manufacturers.


Contextual note: The bank's analysis focuses on month-on-month retail price movements and highlights the role of facelifts and model introductions in shaping short-term pricing dynamics.

Risks

  • Pricing gains are concentrated in facelifted models, leaving manufacturers exposed if demand for non-facelifted lines weakens - impact on passenger automotive and EV retail sectors.
  • Future price improvements hinge on successful launches and facelifts; delays or poor reception of new models like the GX for XPeng or the L9 Livis for Li Auto could limit further price upside - impact on EV manufacturers and consumer demand.
  • Offsetting declines in certain model lines, as seen at BYD, create volatility in blended pricing and could pressure margins if discounts re-emerge - impact on automakers' revenue and profitability.

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