• Share

    Share via...

    • Facebook
    • WhatsApp
    • LinkedIn
    • Twitter
    • E-Mail
    • Pinterest
  • Client areaClient Login
  • EN
  • DE
  • Career
  • Home
  • About us
  • Audit
    • Audit and Assurance
    • Internal Audit and Compliance
    • Transaction Services
  • Legal & Tax
    • Corporate Governance
    • Mergers & Acquisitions
    • Employment Law
    • General Corporate Matters
    • Risk Advisory and Whistleblower
    • Tax Advisory
    • Tax Compliance Services
  • Bookkeeping
    • Accounting
    • Payroll
    • Treasury and secretarial services
    • Tax Filing
    • Financial Controlling
  • Team
  • News & Events
  • Locations

Ebner Stolz Asia

China News

Price Cutting of New Energy Vehicles in China

By Yvonne Zhang March 28, 2024

At the beginning of 2024, Tesla initiated the year’s price reduction trend by launching the “first shot” of price cuts, lowering the prices of its Model 3 and Model Y rear-wheel drive and long-range versions. This move brought the prices of Tesla’s refreshed Model 3 and Model Y to their lowest in the history of the Chinese market. Moreover, consumers are offered a 2.5% ultra-low loan interest rate if they complete their purchase before the end of March.

Following Tesla’s lead, several new energy vehicle brands quickly joined the trend. Li Auto and NIO, citing the upcoming launch of their updated models as the reason, offered discounts ranging from RMB 20,000 to RMB 25,000 on specific models.

According to partial statistics, since the start of this year, over ten new energy vehicle brands have introduced price reductions or limited-time cash discount promotions to draw in more potential customers.

A research report from Ping An Securities highlighted that leading new energy vehicle companies face growth rate pressures in 2024. Consequently, the price war they have sparked is expected to rage on, particularly within the mainstream price range of 100,000 RMB to 200,000 RMB. Additionally, the declining cost of batteries offers further room for manufacturers to engage in price reductions.

A number of new energy vehicle firms have set forth their latest annual sales goals. Predictions from the China Automobile Association indicate that sales of new energy vehicles in China are expected to reach about 11.5 million units in 2024, an increase from 9.495 million units in 2023, which equates to an approximate growth of 21%. The sales growth targets for 2024 set by these companies surpass this projection.

Overcapacity in new energy vehicles significantly influences companies’ decisions to reduce prices. Currently, the capacity utilization rate for China’s new energy vehicles stands at only 13%, indicating a considerable surplus of supply over demand. It is expected that as the industry reshuffle intensifies, the price battle will continue throughout the year.

Cui Dongshu, the secretary-general of the China Passenger Car Association (CPCA), remarked in a personal post that 2024 is a crucial year for new energy vehicle enterprises to solidify their market position, and the competition is expected to be exceedingly fierce.

How can we help you?

Yvonne Zhang

  • +86 21 6330 9962, ext. 803
  • yvonne.zhang@cn.ebnerstolz.com
  • View Profile
  • All team members

News & events

All news & events

  • Download our year-end China law review January 8, 2025 by Catherine Yan
  • Trends & Developments in Chinese eCommerce December 16, 2024 by Dr. Gerald Neumann
  • Observation: Escalating Difficulties in Company’s Tax Refunds December 16, 2024 by Eloise Yao
  • General Financial Reporting When Doing Business in China December 16, 2024 by Lily Sun
  • Deepening China’s Legal Framework on Data Protection: from the Cybersecurity Law to the Regulations on Promoting and Regulating Cross-border Data Flows December 16, 2024 by Catherine Yan
  • event
    Conference wrapped up at Ebner Stolz’s New Office: “New Developments and Opportunities in the Chinese-German Investment Landscape. June 6, 2024 by Dr. Gerald Neumann
  • person
    A glimpse into the sprint phase of “Made in China 2025”: A German investor faces new demands for localization of imported products in the Chinese market June 4, 2024 by Dr. Nataliya Esakova & Sven Stuckmann
  • The EU Chamber of Commerce Survey: Enterprises struggle to cut down costs while China opens up further June 4, 2024 by Yvonne Zhang

Sign up for our newsletter to receive news and insights on business in China

Check your inbox or spam folder to confirm your subscription.

Representing you through 3 offices in China and Southeast Asia

Beijing
Bangkok
Shanghai
  • Shanghai
  • Bangkok
  • Beijing

Get in touch

  • Site Links
    • Home
    • About us
    • Team
    • News & Events
    • Career
  • Expertise areas
    • Audit and Assurance
    • Internal Audit and Compliance
    • Transaction Services
    • Corporate Governance
    • Mergers & Acquisitions
    • Employment Law
    • General Corporate Matters
    • Risk Advisory and Whistleblower
    • Tax Advisory
    • Tax Compliance Services
    • Accounting
    • Payroll
    • Treasury and secretarial services
    • Tax Filing
    • Financial Controlling
  • News & Events
    • All News & Events
    • Our Events
    • Accounting News
    • China News
    • Law News
    • Ebner Stolz News
    • HR News
    • Tax News
  • Follow us on linked.in
  • Imprint
  • Privacy Policy