The Hongqi G919 instantly captured the spotlight upon its debut.

Frankly speaking, many were taken aback by Hongqi's foray into rugged off-road vehicles. However, this move is now more comprehensible, as Hongqi aims to establish high-end off-road vehicles as a new growth engine.

In recent years, an increasing number of brands have ventured into the off-road vehicle market, with some already reaping positive market responses. Presently, the off-road vehicle market is emerging as a fresh opportunity for automakers seeking breakthroughs, and Hongqi, too, requires such an avenue.

By 2025, Hongqi had achieved a cumulative sales volume of 460,000 new vehicles, marking eight consecutive years of positive growth and setting a new sales record. Nevertheless, beneath this prosperity, Hongqi's challenges have become increasingly apparent.

As 2026 unfolds, Hongqi's growth has slowed down somewhat. Third-party platform data reveals that at the beginning of this year, Hongqi's sales began to decline and have continued to do so for five consecutive months. In the first five months of this year, Hongqi sold a cumulative total of 118,000 vehicles, achieving only 21.45% of its annual sales target of 550,000 vehicles.

An unavoidable factor contributing to this situation is the continuously rising penetration rate of new energy vehicles in the Chinese automotive market. In April this year, the domestic new energy penetration rate reached 61.4%, and in May, it further increased to 62.9%. However, fuel vehicles still constitute the mainstay of Hongqi's current sales. Third-party platform data indicates that in 2025, Hongqi's fuel vehicle sales reached 311,000 units, accounting for 67.6% of its total sales.

Analyzing the product sales mix, the Hongqi H5, Hongqi HS5, and Hongqi E-QM5 contributed nearly 70% of the brand's sales. Specifically, the Hongqi H5 sold 163,600 units throughout the year, the Hongqi HS5 sold 86,500 units, and the Hongqi E-QM5 sold 68,000 units, totaling 318,100 units and supporting more than half of Hongqi's sales.

This sales composition has directly led to a decrease in Hongqi's average transaction price for new vehicles.

Third-party platform data shows that currently, the Hongqi H5, with a starting guide price of 159,800 yuan, has an actual starting terminal price that has dropped to 109,800 yuan. The terminal price of the Hongqi HS5 has entered the 130,000 yuan range. The terminal starting price of the Hongqi E-QM5, primarily targeted at the mobility market, has even fallen below 90,000 yuan. In essence, the terminal transaction prices of Hongqi's best-selling models are largely concentrated between 90,000 and 150,000 yuan.

According to the "2025 China Passenger Vehicle Market Price" report released by Jielanlu, the average transaction price of the Hongqi brand is only 150,000 yuan, significantly lower than that of mainstream luxury brands and even lower than that of ordinary mass-market brands such as Toyota, Honda, Exeed, and Trumpchi.

More critically, Hongqi's new energy segment is essentially struggling.

In 2025, Hongqi's new energy penetration rate was only 32.3%, with most of this attributed to the Hongqi E-QM5. The highly anticipated "Tiangong" series has consistently underperformed in sales. Third-party platform data reveals that in 2025, the Hongqi Tiangong series sold a cumulative total of just over 10,000 units for the entire year. In the first five months of this year, the combined sales of the Tiangong series were only slightly over 2,200 units, a figure less than the weekly sales of popular new energy vehicles.

It can be said that declining sales, low average transaction prices, and a weak presence in the electrified market are the current realities for Hongqi. Undoubtedly, Hongqi is perceived as a luxury brand. However, when it comes to actual purchases, consumers are hesitant to pay a premium. This indicates that Hongqi's luxury brand premium has not been fully realized in the market.

Currently, Hongqi has set its sights on the luxury off-road vehicle market as a potential breakthrough.

Although the off-road vehicle market is becoming increasingly vibrant, and automakers that have entered the rugged off-road vehicle market in the past two years have reaped rewards, the competition in the high-end off-road market is relatively less intense compared to other segments, with only a few notable players. If we add the descriptors "luxury" and "intelligent," the number becomes even smaller. Hongqi's luxury brand positioning is undeniable, and with Huawei's collaboration, its intelligence quotient is sufficient.

Featuring four electric motors, three locks, a body-on-frame design, LiDAR, Huawei Intelligent Driving, and a range of 1,300 kilometers, a series of parameters silently convey the robust performance of the Hongqi G919 and demonstrate Hongqi's determination to make an impact in the high-end off-road vehicle market.

Of course, this does not mean that Hongqi faces no challenges in entering the luxury rugged off-road market.

It should be noted that before Hongqi, Mengshi had already entered this segment. However, market feedback indicates that Mengshi's performance has not met expectations. When the Mengshi M917 was officially launched, Mengshi Technology CEO Cao Dongjie boldly claimed, "The Mengshi 917 will have a limited release of 1,687 units in 2023." However, by the end of 2023, only 824 units of the Mengshi 917 had been sold. In 2024, the Mengshi M917 sold only 2,101 units for the entire year, averaging 175 units per month.

Ultimately, on the one hand, the high-end market is inherently limited in size, and on the other hand, Mengshi has failed to effectively communicate to consumers why they should pay 600,000 to 800,000 yuan for a vehicle.

Admittedly, the Hongqi G919 is equipped with Huawei's intelligent cockpit and driving technologies, but nowadays, various products adopting Huawei's solutions are abundant. Coincidentally, the Xiangjie brand, a collaboration between BAIC and Huawei, launched the Xiangjie G9 almost simultaneously with the Hongqi G919.

This is precisely one of Hongqi's challenges. In the eyes of the outside world, Hongqi's real test is not the G919 itself, but how to convince consumers to pay more for a "luxury brand."

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