A total of 10 Chinese new-energy vehicle (NEV) brands are offering a new round of price cuts and other types of incentives, aiming to meet their second-half sales targets, industry sources said.
NEV start-up Zeekr announced on Friday it will offer price cuts for its 001 model ranging from 30,000 ($4,146) to 37,000 yuan, valid for the rest of the year. Leapmotor announced on August 1 it will offer price cuts of 10,000 to 20,000 yuan on some models, and Hozon Auto announced a 30,000-yuan discount for its NEV brand Nezha.
Nio is offering charging coupons for new buyers in August, with a price cut of 2,700 yuan for its charging piles.
Some traditional automakers have also joined the promotion drive. For example, Chery announced a maximum discount for its NEV line-up of 10,000 yuan. Great Wall Motor Co’s NEV division is offering coupons for pre-order consumers.
These promotions are intended to spur a sales increase in the second half of 2023. Some of the brands failed to achieve their first-half sales goals, an industry insider surnamed Chen in Guangzhou, South China’s Guangdong Province, told the Global Times on Sunday.
“Auto sales usually peak around September to October each year, and these promotions may enhance consumption during the peak period,” she noted.
Cui Dongshu, secretary general of the China Passenger Car Association (CPCA), told the Global Times on Sunday that NEV brands’ promotions are within the normal range, and the discounts are unlikely to trigger a new price war in the NEV market.
CPCA data showed that China’s auto sales in July hit 1.78 million, down 2.3 percent year-on-year. Sales of NEVs reached 641,000, up 31.9 percent year-on-year.
Chinese authorities started the annual NEV promotional campaign this June in rural areas in a bid to boost the national consumption. The CPCA predicted that China’s full-year auto sales will reach 21 million with NEV sales reaching 8.5 million.
(Global Times)
