China EV Price War Coming?

Price cuts are driving sales in China. The consumer is benefiting.

The price war in China for electric vehicles is getting worse after XPeng introduced major price cuts in the world’s biggest EV market, following the example of its rival Tesla

XPeng (ticker: XPEV) lowered the sticker price on its G3i base models by 12.5% to about $22,000, bowing to pressure after Tesla (TSLA) announced price cuts earlier this month. Other competitors, including Mercedes-Benz (MBG.Germany), have also recently slashed prices.

Average daily sales for Tesla in China during the Jan. 9 to Jan. 15 period jumped 76% from the same period in 2022 to 12,654 vehicles, CMBI’s data showed.