Business
China’s Electric Vehicle Battle: Unprecedented Price Cuts by BYD and Rivals Strain Profit Margins
The battle for electric vehicle dominance in China: BYD among others are reducing prices drastically, sacrificing profit margins
Between January and September, manufacturers of electric vehicles cut prices on 124 models, and the cost of 71 gasoline car models also fell, according to industry reports.
Chinese automakers including BYD, Xpeng, Li Auto, Geely Auto, and others have cut prices on a historic 124 electric vehicle models from January to September of this year, as per information released by the China Passenger Car Association (CPCA). This number has already exceeded the 97 models that saw price reductions in the entire year of 2023, as reported by the association.
In 2024, price slashing intensified, with electric vehicle corporations offering unprecedented discounts," stated Cui Dongshu, the CPCA's chief secretary, during a WeChat interview. He noted the market's ruthless and fierce competitiveness.
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China intensifies support for exchanging traditional vehicles for electric ones.
BYD initiated the latest round of price competition by reducing the prices of almost all their vehicles by 5 to 20 percent in February. According to the CPCA, car manufacturers altogether reduced the prices of 69 electric cars by 23,000 yuan (US$3,249), representing an average decrease of 13.5 percent. The prices of 29 plug-in hybrid models also dropped by 24,000 yuan, or 13.7 percent.
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