China's EV Price War Reaches New Heights
In 2024, Chinese electric vehicle manufacturers, including BYD, Xpeng, and Geely Auto, increased their price discounting to attract buyers. From January to September, 124 models saw price cuts, exceeding last year's 97 models, as reported by the China Passenger Car Association. This aggressive pricing is challenging profitability and sustainability in the world's largest EV market.
In 2024, Chinese electric vehicle (EV) manufacturers, including BYD, Xpeng, Li Auto, and Geely Auto, have significantly increased their price discounting to attract buyers, resulting in strained profit margins.
From January to September, prices were slashed on a record 124 EV models, surpassing the 97 models discounted in all of 2023, as reported by the China Passenger Car Association (CPCA).
Fierce competition in the world's largest EV market has prompted nearly all of China's 50 major automakers to cut car prices, including discounts on 71 petrol-powered cars.
The aggressive pricing strategy, first initiated by BYD, saw carmakers reduce prices on 69 all-electric vehicles by an average of 13.5%, and 29 plug-in hybrid models by 13.7%, equating to reductions of 23,000 yuan (approximately US$3,249) and 24,000 yuan, respectively.
Efforts to boost sales volume have intensified concerns about the long-term sustainability of the market, as some automakers face financial struggles due to decreased margins.
From January to September, prices were slashed on a record 124 EV models, surpassing the 97 models discounted in all of 2023, as reported by the China Passenger Car Association (CPCA).
Fierce competition in the world's largest EV market has prompted nearly all of China's 50 major automakers to cut car prices, including discounts on 71 petrol-powered cars.
The aggressive pricing strategy, first initiated by BYD, saw carmakers reduce prices on 69 all-electric vehicles by an average of 13.5%, and 29 plug-in hybrid models by 13.7%, equating to reductions of 23,000 yuan (approximately US$3,249) and 24,000 yuan, respectively.
Efforts to boost sales volume have intensified concerns about the long-term sustainability of the market, as some automakers face financial struggles due to decreased margins.
