9th May 2023


China in Electric Vehicle price war

China is deep in the electric vehicle price war and interest is moving to SUV-style EVs and the largest segment of the market is dominated by Tesla Inc and BYD.

The market has more than 90 models, and at least 20 new models of both Chinese and foreign brands launched in April, squeezing pricing and margins at home and driving exports, analysts and executives said.

EV makers in China have followed Tesla's price cuts by cutting prices for their own electric SUVs, beating sales of internal combustion engine (ICE) vehicles as the price gap between the technologies narrows, analysts said.

The trend will continue in other countries with growing exports of China-made electric SUVs.