On March 1st, a number of major car manufacturers initiated intense price reductions and promotions. As of press time, nine car manufacturers have announced price reductions or started limited-time promotions, with discounts of up to 47,000 yuan and other benefits worth up to about 40,000 yuan.
It is predicted that domestic car prices may drop by as much as 30% over the next three years with industry experts commenting that “price cuts by car manufacturers seem to have entered a stampede-like state, with everyone disregarding reasonable profits and future development.”
One reason that the price of EVs is dropping is that the average price of an EV battery has dropped by 35% since 2015. Taken together with the fact that increased production has led to economies of scale and reduced manufacturing costs the increase in competition in the electric car industry has forced manufacturers to lower their prices to remain competitive.
On February 19th, BYD introduced its Glory Edition models for the first time with the slogan “electric is cheaper than oil.” As of March 1st, eight BYD Glory Edition models have been launched, covering A-zero to C-class sedans, compact and midsize SUVs, and pure electric and hybrid vehicles.
These BYD Glory Edition models adopt a strategy of price reduction with increased configuration, with an average starting price reduction of 20,000 yuan, lowering the threshold for purchasing.
The Qin PLUS Glory Edition has reduced its price by 20,000 yuan;
The Destroyer 05 Glory Edition has reduced its price by 20,000 – 22,000 yuan
The Dolphin Glory Edition has reduced its price by 17,000 yuan, dropping below 100,000 yuan;
The Han Glory Edition’s price reduction ranges from 10,000 to 40,000 yuan;
The Tang DM-i Glory Edition model has the highest reduction of 30,000 yuan;
The Song PLUS Glory Edition has reduced its price by 20,000 yuan and also added a starting model priced at 129,800 yuan;
The Sea Lion DM-i Glory Edition has reduced its price by 17,000 yuan;
The Song Pro Glory Edition has reduced its price by 20,000 yuan.
BYD said that there will be more Glory Edition models launched in the future.
BYD’s momentum to dominate the 100,000 to 300,000 yuan passenger car market has put pressure on its competitors.
After the launch of the Qin PLUS Glory Edition, more than 8 independent or joint venture brands followed suit with price reductions within a week.
Geely launched the 2024 Spring Car Buying Festival, with limited-time discounts of up to 2 billion yuan in March, cash discounts of up to 47,000 yuan, interest-free loans of up to 100,000 yuan, and trade-in subsidies of up to 10,000 yuan. The promotion covers the Star Yue L, Star Rui, Bo Yue, Emperor Hao, Bin Yue, Bin Rui, Hao Yue, ICON, and Panda series, with price reductions ranging from 3,000 yuan to 14,000 yuan.
At the same time, Geely’s micro-electric car Panda MINI Dragon Edition was launched, priced at 39,900 yuan; March car purchase benefits include up to 10,000 yuan in cash red envelopes, free portable charging guns, and warranty and financial benefits.
SAIC Volkswagen’s Touareg family started limited-time promotions, with the 2024 Touareg 380TSI four-wheel drive supreme luxury edition priced at 279,900 yuan, and the 2024 Touareg X 380TSI four-wheel drive supreme luxury edition priced at 265,000 yuan. At the same time, 2.0T models of the Touareg family are eligible for a 2,000 yuan cash voucher or a 3-year worry-free maintenance package.
The FlyFantasy F7 (飞扬F7 ) launched March limited-time car purchase preferential policies, with a price reduction of 25,000 to 30,000 yuan for the Advanced, Advanced Pro, Long-endurance Pro, and Performance Pro versions, as well as free upgrades to the Comfort package, lifetime free use of the RISING PILOT comprehensive advanced driving system software package worth 30,000 yuan, and financial and traffic benefits.
Following the announcement of limited-time promotions on February 19th and 20th, Changan Qi Yuan officially announced on March 1st that the Qi Yuan Q05 125km version is priced from 96,900 yuan, down from the previous starting price of 131,900 yuan.
Changan Automobile also announced on the same day that the micro-electric car Changan Lumin is eligible for a maximum discount of 12,000 yuan, and all models are eligible for 0% interest.
Chery Group announced the launch of the “Subsidy Season” activity, covering the four major brands of Chery, Xingtu, Jietu, and iCAR, with subsidies of up to 40,000 yuan for old-for-new, trade-in replacements. In addition, some models also offer limited-time promotions, with the highest comprehensive discount reaching 19,000 yuan.
Zhi Ji LS6 launched “Spring, Limited-Time Car Purchase Benefits.” Running from March 1st until March 31st, customers can enjoy “cash deduction gift + upgrade purchase gift + luxury configuration gift,” with a maximum value of 57,800 yuan.
Hyundai ix35 Musa launched limited-time promotions, starting at 99,800 yuan, down by 22,000 yuan.
Tesla couldn’t sit still either and launched limited-time car purchase policies on March 1st, with discounts of up to 34,600 yuan.
Their 3/Y rear-wheel drive models enjoy a limited-time insurance subsidy of 8,000 yuan; Model 3/Y full-line models enjoy a limited-time specified car paint benefits, saving up to 10,000 yuan and Model 3/Y rear-wheel drive models enjoy a limited-time low-interest financial policy, with an annual fee as low as 1.99%.
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