Price Change

Tesla's two promotions in China over the past two months have not had the desired effect, local media said.

Xpeng has cut the SKUs of the P7, P5 and G3i in half, seemingly hoping to boost declining sales by making it easier for consumers to choose.

Although Xpeng has not directly adjusted the prices of its models, the discounts to some extent amount to a price cut in disguise, local media said.

Despite the steep price cuts, industry watchers remain pessimistic about the performance of the Mercedes-Benz EQ series in China.

The CPCA secretary general said automakers would be in an awkward position to raise prices next year after cutting them at the end of this year, which would be bad for sales activity.

Mustang Mach-E prices in China have been cut by as much as RMB 28,000 in response to price cuts by Tesla.

Tesla's price cut has made the competition in China's NEV industry more intense, with competing models of the Model 3 and Model Y likely to follow, analysts say.

AITO is the first NEV brand to follow Tesla's price cut, and industry insiders believe a wave of price cuts in the auto industry is about to begin.

All versions of Tesla Model 3 and Model Y are priced lower in China, with the entry-level Model Y dropping below RMB 300,000 and eligible for purchase subsidies.

Polestar has raised the prices of all three versions of the Polestar 2 in China, blaming the continued sharp rise in the prices of raw materials.