Price War

China's auto market saw 227 models with price cuts in 2024, more than 148 in 2023 and significantly higher than 95 in 2022, according to CPCA secretary-general.

Wuling's move brings the price of an electric model with a range of 500 km below RMB 90,000 yuan.

Xpeng CEO has revealed the company's key tasks for 2025 and his view of the market in an internal letter, telling employees to prepare for tougher competition.

BYD is asking some of its passenger car suppliers to lower their parts quotes, as it expects competition in the NEV market to be fiercer in 2025.

In the January-September period, China saw 195 models with price cuts, surpassing the 150 models in the whole of 2023, and significantly higher than the 95 models in 2022.

CADA has called on Chinese authorities to introduce financial relief for the dealership sector, saying that price wars have led to a cumulative loss of RMB 138 billion yuan ($19.6 billion) in new car retail sales in the January-August period.

The Bao 5 was launched on November 9, 2023, and monthly deliveries have been below 3,000 units for the past three months.

Nio will reduce discounts by RMB 3,000 for the ET5 and ET5 Touring and RMB 5,000 for the ES6 and EC6 on July 22, according to local media.

BMW was the first to withdraw from the price war in China's car market, scaling back incentives, with Mercedes-Benz and Audi following suit.

BYD's blended price rose 1 percent month-on-month in June, while those of Nio, Xpeng, and Li Auto remained stable.