China's car price cut war Gas car 'significantly' Electric car 'waiting for additional discount'​

China's car price cut war Gas car 'significantly' Electric car 'waiting for additional discount'

As the Chinese automobile market wages a price cut war, gas cars with internal combustion engines are 'significantly' discounted, and electric cars are waiting for 'additional discounts', increasing the price drop.
The New York Times reported on the 17th, “More than 40 automakers in China discounted electric and gas-powered vehicles this year,” and “discounts amounted to hundreds of dollars for low-cost models and tens of thousands of dollars for luxury products.”
According to data from the China National Passenger Vehicle Association, from March 1 to 19, the passenger car market sold 700,000 units, down 8% year-on-year and 4% year-on-year. % decreased.
In terms of wholesale, passenger car manufacturers nationwide sold 74,6 units, an increase of 13% from the same period last year and 0% from the previous month, and the cumulative sales volume since the beginning of this year was 3,812 units, a decrease of 15% compared to the same period last year. ' said on March 17.
Volkswagen's Chinese joint venture cut the price of electric vehicles by 3% in one week in March.
China's state-owned Changgang Automobile has offered cash rebates, free charging credits and other incentives for electric vehicles.
China's largest electric vehicle (EV) maker BYD announced its second price cut in a month on some older models.
There are about 300 domestic EV manufacturers across China.
“The price war will definitely continue because it is important to mass-produce EVs,” said Cui Dongxu, general secretary of the China Passenger Car Association. “In the end, companies with low sales or poor technology will be easily eliminated. ' he told the NYT.
The Automobile Association's statistics declined 13 per cent in the first three months of the year.
The decline was confirmed by a sharp drop in sales of conventional fuel-powered vehicles and slowing growth in electric vehicles.
Traditional automakers are raising discounts to lower inventories of older cars before strict national emissions standards starting in July make selling diesel- and gas-powered vehicles harder.
A poster promoting Toyota sales in Shenzhen, southern China, advertised online as “a free gasoline sedan when purchasing a bZ4X, an electric sports utility vehicle,” but has now disappeared.
Automaker Li Auto introduced a ‘price insurance policy’ and on March 11, “From March 11 to March 31, owners can buy high-end L-series models (L7, L8, L9) through Li Auto’s official channels. After placing an order, if the price of the purchased model is reduced within 90 days from the order date, Li Auto tried to take the initiative in sales with a policy of returning the difference.
Electric car companies Nezha and Zerorun have also since launched price insurance policies.
The China Automobile Dealers Association told the New York Times that foot traffic to dealerships has soared since price cuts in March, but orders have declined.
Some automaker executives told the New York Times they were concerned that consumers would get used to waiting for price cuts.
At the 'Investor Day' event in March, Tesla announced that it would cut the production cost of next-generation models by half from current models such as 'Model 3' and 'Model Y' by reducing the process and time.
CNBC announced on the 16th that the price of Tesla's low-cost electric car model has been revised down and is expected to start at $25,000 to $30,000.
Fisker, a start-up electric vehicle company, will release the PEAR crossover for $29,900 in the US next year, and General Motors (GM) will release the Chevrolet Equinox, a sub-$30,000 SUV this fall. CNBC announced that it will be released.
Volkswagen ID with a factory price of $ 25,000. 2 model release was announced on the 15th.
Bloomberg reported that at the Shanghai Auto Show on the 16th, Chinese electric vehicle maker Xiaopeng announced that it would cut production costs by more than half by “reducing power unit costs such as batteries by 25% and intelligent driving function costs by 50% by the end of next year.”
Among electric vehicles, only three low-cost models, GM Chevy Volt and Volt EUV, and Nissan Leaf of Japan, have MSRPs of less than $30,000.