From January to September, a total of 195 automobile models experienced price cuts, significantly surpassing the 150 models seen throughout all of 2023 and the 95 models reported in 2022, according to Cui Dongshu, secretary-general of the China Passenger Automobile Association (CPCA). In a diverse array of automotive styles, the price decrease of new energy vehicles (NEVs) stands out, with discounts exceeding 13% for plug-in hybrids and electric vehicles alone.
Extra particularly:
- Seventy-one gasoline-powered vehicles experienced a depreciation in value, with a median decline of ¥15,000 (approximately $2,140) and a median percentage decrease of 9.3%.
- Thirteen hybrid fashion items saw their value depreciate, with an average reduction of ¥15,000 and a corresponding decrease of 8.4%.
- Twenty-nine plug-in hybrid models saw their prices drop, with an average reduction of 24,000 yuan ($3,420) and a median decrease of 13.7%.
- Thirteen range-extender models experienced price drops, with a median decrease of 14,000 yuan ($2,000) and a median percentage decline of 7.6%.
- A total of 69 electric vehicle models experienced a decline in value, with an average price reduction of ¥23,000 (approximately $3,280) and an average depreciation rate of 13.5%.
| Gasoline-powered | 184 | 63 | 29 | 54 | 53 | 71 |
| Hybrid | 3 | 4 | 2 | 1 | 4 | 13 |
| Plug-in hybrid | 10 | 4 | 7 | 8 | 15 | 29 |
| Vary-extender | 1 | – | 1 | 1 | 7 | 13 |
| Pure electrical | 14 | 23 | 23 | 31 | 71 | 69 |
| 212 | 94 | 62 | 95 | 150 | 195 |
The perceived value proposition of range-extender and hybrid fashion styles appears relatively nuanced. While gasoline prices fluctuate, domestic gas-powered cars also feel the impact of decreased values in imported models. As the demand for new energy vehicles (NEVs) continues to surge, driven by price reductions, a notable trend has emerged: mid-to-high-end gasoline-powered cars are now experiencing significant value cuts in response.
On June 1, Geely unveiled its “Galaxy Storm Operation,” which included a limited-time offer: a 15,000-yuan manufacturing facility alternative subsidy for the Geely Galaxy E8, available from June 1 to June 30, 2024.
The value discount remains an indispensable tactic to drive automotive sales. While many auto manufacturers have seen a surge in overall sales, some are actually selling their vehicles at a loss to boost market share and drive growth. Li Shufu, chairman of Geely, cautions that a value war could lead to cutthroat measures such as reducing corners, tolerating counterfeits, and encouraging fake products.
Supply: Cui Dongshu
