Prices slashed again in China’s EV sector, threatening unprofitable carmakers

An anticipated sales decline after a government subsidy expires at the end of this year is expected to exacerbate the financial squeeze that is throttling smaller EV makers, analysts said.

“Every auto brand understands that it is crucial to retain their market share in 2025 due to an escalation in price competition,” said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai. “Most of the companies will have to offer discounts to survive the price war.”

Also this week, Tesla cut the price of its Model Y SUV by 10,000 yuan on the mainland. Based on a 249,900 yuan price tag for its basic edition, the promotion represents a 4 per cent discount.

“The leading players’ low-price strategy will be followed by their smaller rivals because they will lose customers if they keep prices unchanged,” said Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai. “Nowadays, middle-income consumers are more price conscious, as they are concerned about pay cuts in a slowing economy.”