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China’s EV war: BYD, peers take discounting to new lows at expense of margins
EV makers slashed prices on 124 models from January to September, while prices on 71 petrol car models also cheapened, industry association says
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Daniel Renin Shanghai
China’s electric-vehicle (EV) producers are cranking up price discounting to an unprecedented level this year to lure buyers. They are boosting sales at the expense of profit margins, leaving many struggling with cash crunches.
BYD, Xpeng, Li Auto and Geely Auto and other domestic peers have slashed prices on a record 124 EV models from January to September this year, according to data published by the China Passenger Car Association (CPCA). That has already surpassed the 97 models in all of 2023, it said.
This will fuel worries about the sustainability of the world’s biggest EV market, where some underachieving players are already fighting for financial survival. Almost all of the nation’s 50 major players have discounted their car prices, including 71 petrol cars, to beat competition, the association added.
“Price discounting became more aggressive in 2024 and the level of discounts offered by EV companies has reached a record,” Cui Dongshu, CPCA’s general secretary, said in an interview on WeChat. “The market is highly competitive and brutal.”
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