Chinese EV makers cannot stop ‘aggressive’ price-cutting – even as it imperils them

The average selling price of a pure electric car, also known as a battery EV (BEV), fell by 24,000 yuan (US$3,275) to 225,000 yuan last month, Cui Dongshu, general secretary of the China Passenger Car Association (CPCA), said in a report published on Monday. Such a steep discount had rarely been seen in the world’s largest automotive and EV market, he added.

“A large number of new EV models were also launched at lower prices, which caused nearly all electric cars to be repriced,” he said. “Price cuts were conducted in an aggressive manner.”

The subsidy for replacing petrol-guzzlers with EVs ran from July to December, prompting customers to rush to seal deals ahead of the year’s end.

Beijing is likely to unveil new incentives this year to encourage sales of environmentally friendly cars in 2025, but not until the close of an annual session of the National People’s Congress in March.

According to CPCA data, a record 227 models, comprising electric and petrol cars, had their prices cut last year, compared with 148 models in 2023. In 2022, only 95 cars were sold at a discount.