At least ten Chinese automakers are currently offering a new round of price cuts and other types of incentives in a bid to boost car sales and meet their second-half sales targets.
Zeekr, Geely Automobile’s electric brand, announced on Friday that it will offer price cuts for its 001 model ranging from 30,000 ($4,146) to 37,000 yuan, effective for the rest of the year.
Leapmotor had announced on August 1 that it would cut prices of some models by of 10,000 – 20,000 yuan, and Hozon Auto announced a 30,000-yuan discount for its NEV brand Nezha.
In addition, Nio is offering charging coupons for new buyers in August, with a price cut of 2,700 yuan for its charging piles.
Some conventional fuel vehicle makers have also lowered prices. For example, Chery Automobile announced discounts of up to 10,000 yuan for its NEV line-up. Great Wall Motor’s NEV division is offering coupons for pre-order consumers.
The promotions came after some automakers failed to achieve their first-half sales targets and the price cuts may boost auto consumption during the traditional peak season in September – October, said industry insiders.
China’s passenger vehicle sales fell for a second month in July, as discounts and government support measures failed to persuade consumers wary of buying cars amid a sputtering economy and a prolonged slump in the housing market.
Car sales totalled 1.79 million units in July, down 2.6% from last year, data from the China Passenger Car Association (CPCA) showed, the second contraction in a row after a 2.9% slide in June.
NEV sales, which have underpinned China’s auto sales growth, are also losing steam. Sales of NEVs rose 31.9% in July from year earlier, but fell 3.6% from June.
Price cuts triggered by Tesla at the start of the year have roped in 40-plus brands in China and have shown few signs of easing. Carmakers are expected to continue offering discounts for products in some segments and some of them may even ramp up discounting, said Cui Dongshu, secretary general of the CPCA.