As reported by CnEVPost.com on Wednesday, sales of electric vehicles (EVs) in China have witnessed a significant downturn in the first four weeks of February due to disruptions stemming from the Lunar New Year holiday.
According to data from the China Passenger Car Association, retail sales of passenger EVs from February 1st to 25th amounted to 283,000 units, marking a notable 22% decrease compared to the same period last year and a striking 44% drop from the previous month.
In the preceding month, automotive and battery juggernaut BYD reported a substantial sequential decline in January EV deliveries. Similarly, its fellow startup peers Li Auto, Nio, and Xpeng also experienced month-over-month sales contractions.
BYD Escalates EV Price Competition On Wednesday, BYD initiated a price reduction strategy for the revamped versions of its Han and Tang EV models, following suit with price cuts across several other models. Notably, these refreshed versions come with significant technological upgrades, including advanced driver-assist features.
China’s EV manufacturers have escalated the price war across various segments of the EV market, targeting both budget and mid-to-high-end consumers.
Rival Tesla had previously discounted the Model Y on February 1st and had also reduced prices for the Model Y and Model 3 in January.
While cheaper battery prices may alleviate some of the impacts of price cuts, BYD and other automakers are expected to encounter additional margin pressures. However, BYD’s sustained growth in exports is anticipated to bolster both sales and margins.
Li Auto Set to Unveil ‘Mega’ EV Li Auto, which recently provided an optimistic outlook for first-quarter sales, is gearing up for a significant launch on Friday. The company is slated to introduce the Mega minivan, its inaugural fully battery-electric vehicle.
The EV startup has reported robust preorders ahead of the launch, with CEO Li Xiang expressing confidence in a Weibo post about the potential success of the Mega EV as a premium blockbuster product.
Li Auto’s current EV lineup comprises the L7, L8, and L9, all of which are extended-range electric vehicles, essentially plug-in hybrids. Additionally, Li Auto will unveil the 2024 versions of these models on Friday.
With a focus on the premium market segment, Li Auto continues to outpace its startup rivals Nio and Xpeng in terms of sales. The company is also intensifying competition against BYD and Tesla, with its delivery figures rapidly ascending.
The Li L7 is positioned as a competitor to Tesla’s Model Y in China. In a recent video, Li Auto compared the ranges of its upcoming Mega EV and the Model X.
It’s worth noting that while Tesla manufactures the Model 3 and Model Y in China, the production of the Model S and Model X occurs elsewhere.
