As more and more entrants enter China’s growing EV market, two of the world’s largest OEMs have decided to cut their EV prices for a limited time.
Volkswagen announced that the ID.3 would be cut to a historically low price of 125,900 yuan. The cut is meant to allow VW to undercut the Model 3 while remaining competitive with the low-cost BYD Dolphin, which is gaining market share at a fast rate in China.
Following shortly after, GM announced it is also cutting its latest EV, the Cadillac Lyriq, by 14 per cent. Per Reuters, the Lyriq crossover is now priced between 379,700 yuan and 439,700 yuan. This is the second big discount GM has done on the Lyriq. Previously, the brand offered a $2,500 discount for buyers who put down a deposit before August.
The Chinese EV market is the most competitive of any of the world markets. With dozens of local Chinese automakers, a host of OEMs, and start-ups from Europe and the United States all competing for market share. Currently, BYD is dominating with over 24 per cent, with Tesla in second with nine per cent.
This will not be the last price slash, but it will be interesting to track if Tesla, BYD, or any other main brands will follow suit. They will now be allowed to after a pledge that was intended to put an end to the EV price wars in China was cancelled last week over concerns of price fixing and violations of anti-monopoly laws.