Leading manufacturers in China engage in aggressive price cuts, threatening competition on a global scale.
The largest Chinese electric vehicle (EV) manufacturer has significantly reduced prices in a strategy aimed at undercutting competitors.
This aggressive pricing approach raises questions about the long-term viability of established brands in the market.
Current dynamics indicate that Chinese companies possess sufficient inventory and financial backing to sustain substantial price reductions across their model ranges.
A notable price battle is unfolding in China’s electric vehicle market, leading some industry experts to characterize the situation as an extreme price war.
Prominent manufacturer BYD has initiated dramatic price cuts that compel rivals to respond.
New electric vehicles are now available in China for as low as €7,500.
Additionally, plug-in hybrids and SUVs can be found starting around €10,000.
In contrast, similar vehicles in Europe are typically priced between €25,000 and €30,000.
Geely, the owner of Volvo, has also slashed prices for several models, as reported by industry sources.
Its Galaxy brand is currently offering time-limited discounts on seven models.
Among these, the popular family electric car, the Hanguang, priced at just under €8,300, had previously sold for approximately €9,500.
Furthermore, customers exchanging their old vehicles may qualify for additional financial incentives, including government subsidies.
This can lead to total savings of nearly €3,700, making these electric vehicles highly accessible.
Geely and BYD are not alone in this pricing strategy.
Chinese manufacturers IM Motors and Leapmotor are also implementing discounts of up to 30% on select models, particularly larger electric SUVs in the mid-range category.
The involvement of multiple manufacturers highlights the intense competition and signifies that the battle for consumers in the largest electric vehicle market globally is intensifying.
European and Japanese competitors, as well as American company
Tesla, may find it increasingly difficult to maintain their market positions in light of the aggressive strategies employed by Chinese brands.