Over 200 Car Models See Price Cuts in China This Year
According to Cui Dongshu, secretary-general of the China Passenger Car Association (CPCA), automakers in China have slashed prices on 224 car models as of November this year. This figure significantly exceeds the total number of models discounted during the full years of 2023 and 2022, which stood at 150 and 95 respectively. The most substantial price reductions, averaging around 10% or RMB 20,000 ($2,748), were applied to battery electric vehicles (BEVs). Plug-in hybrid electric vehicles (PHEVs) and gasoline-powered cars saw average price cuts of 8.5% and 7.3%, respectively. Cui noted that government financial support introduced in July to boost consumption may alleviate pressure for further price cuts by year-end. However, UBS auto analysts predict another potential price war in the coming year, partly driven by the earlier-than-usual timing of the Chinese New Year holidays. This trend highlights the intense competition within the Chinese automotive sector, particularly among new energy vehicle manufacturers, as they strive to maintain market share amidst evolving consumer demand and policy incentives.
Wire timeline
Over 200 Car Models See Price Cuts in China This Year
According to Cui Dongshu, secretary-general of the China Passenger Car Association (CPCA), automakers in China have slashed prices on 224 car models as of November this year. This figure significantly exceeds the total number of models discounted during the full years of 2023 and 2022, which stood at 150 and 95 respectively. The most substantial price reductions, averaging around 10% or RMB 20,000 ($2,748), were applied to battery electric vehicles (BEVs). Plug-in hybrid electric vehicles (PHEVs) and gasoline-powered cars saw average price cuts of 8.5% and 7.3%, respectively. Cui noted that government financial support introduced in July to boost consumption may alleviate pressure for further price cuts by year-end. However, UBS auto analysts predict another potential price war in the coming year, partly driven by the earlier-than-usual timing of the Chinese New Year holidays. This trend highlights the intense competition within the Chinese automotive sector, particularly among new energy vehicle manufacturers, as they strive to maintain market share amidst evolving consumer demand and policy incentives.
TechNode