Tesla and Chinese electric vehicle (EV) giant BYD keep on fueling the price wars with the latest reductions in prices of their offerings as well as discounts of various kinds in China.
BYD on Friday announced new price cuts for its Song Pro DM-i Glory Edition compact sport utility vehicle by CNY20,000 ($2,780) to a minimum of CNY109,800 ($15,250).
The latest reduction follows last month’s price slash of the Song Plus DM-i, Song Plus EV, BYD Tang, BYD Dolphin, Qin Plus, as well as Chaser 05 by CNY20,000 to CNY30,000 to CNY79,800 ($11,090).
Tesla today also announced a new promotion for Chinese customers with few Model 3 and Model Y can benefit from new insurance subsidies of CNY8,000 ($1,110). Customers can also save up to CNY10,000 ($1,389) on car paint and car loans with an annual rate of 2 percent.
The latest Tesla discount offer is available through March this year.
Other Chinese car makers are also participating in price wars including SAIC Motor’s EV brand Raising Auto declining prices by CNY 25,000 to CNY 30,000 for some models.
Chinese car industry analyst says that the new price cut is a reflection of a drop in lithium carbonate prices. It is a major raw material used to produce batteries.
Data from Chia’s Minmetals Securities shows that the price of lithium carbonate has declined by 70 percent year over year and the decline for the past year stands at 80 percent.
However, the market is expected to stabilize this year. However, we could expect the EV price wars to continue as the Chinese EV market could grow up to 11.5 million units this year.
(source – Yicaiglobal)