Posted on by

Price War Over Electric Cars Erupts in China



Share

A cutthroat price war has erupted in the world’s largest automobile market.Within the span of a week in March, Volkswagen’s Chinese joint venture slashed prices on its ID.3 electric cars by 18 percent. Changan Automobile, one of China’s state-owned car manufacturers, offered $3,000 cash rebates, free charging credits and other incentives for its electric vehicles. BYD, the country’s biggest E.V. maker, unveiled a second round of markdowns in a month for some of its older models.Amid slumping auto sales, car brands are going to extremes to stay competitive, offering dealership giveaways and deep discounts. Over 40 carmakers have discounted electric and gas-powered vehicles in China this year. The discounts have amounted to several hundred dollars for cheaper models, and tens of thousands of dollars for higher-end offerings.“The severity of this cycle of price cuts is something that I’ve never se …

Read More