Tesla may have ignited a price war by slashing its car prices in China, because manufacturers like Seres and Xpeng have already followed its example.
Last weekend, Seres started presenting buyers with 30,000-Yuan discounts on its Aito EV lineup co-designed with Huawei. The best-selling Xpeng P7 sedan (see video) lost 12.5 percent of its price and is now being offered at just 210,000 Yuan. The P4 sedan and the G3i SUV shed 10–13 percent of their prices depending on the trim level.
The discount craze started in the wake of the reports highlighting hot competition in the EV segment of the market and the projected decline in this segment in Q1 2023.
Tesla slashed the prices on its four models in the first days of the year, marking the second time it has done so since last fall. Considered together, the discounts made the EVs 13–24 percent more affordable than they had been just half a year before. Furthermore, some Tesla modifications in China now cost only two-thirds of their U.S. price.
