Tesla exhibition salon with logo and electric vehicles on the screen, including Model 3 and Model Y, was seen on January 12, 2025. In Chongqing in China.
Cheng Xin | Getty Images
Electric cars in China welcomed a year of snakes with a series of consumers incentives, after the main car manufacturers reported a Delivery drop at the beginning of the year.
The softness in Chinese consumption indicators has raised workers that car manufacturers may not be able to sell their accumulated car inventory, said Liz Lee, a co -worker of the director at Counterpoint Research. “So around the Chinese New Year’s holidays … have just begun [these] aggressive promotions. Let’s see how [long] It will last. “
The monthly New Year’s holiday lasted from January 28 to February 4 in continental China this year, launching the Agrarian Chinese Zodiac Year of the Snake. In January, Beijing said he had already issued 81 billion Yuan ($ 11.12 billion) To support the consumption of electric carssmartphones and home devices during an extended vacation.
Wednesday, the first official working day after the holidays, Tesla announced an 8000 yuan Insurance Subsulation and a five -year -old interest financing plan for your cheapest car, model 3. Which lowers the total basic prices for almost $ 1,100 for customers that make a 34% payment of around $ 11,000 this month and participate in 0% financing plan. Customers who make lower payments will be charged for interest.
Tesla announced in January Same five -year -old impersonal plan for your new model y Shipping for China should start in March. American car manufacturer told her sale in China Press the record last yearbut warned of Competitive pressure.
Chinese startup Xpeng on Wednesday Gave up the advance Completely, offering a five -year contract for endless financing for four models, and A In a hashtag on social networks, he pointed out that he is the only car manufacturer to offer zero advance with 0% interest. Xpeng has already renounced the advance on one of the cars, the G6 SUV, during the December sales agreement.
Nio 1. February announced a Five -year -old interest plan of 0% A month after his total car sales fell to 13,863 units in January, which is a drop of 31,138 previous month.
This new promotion is a step towards a three -year loan plan of 0% interest rate that the company started in January. Competitor Li car In November he also announced a Three -year 0% interest plan.
The latest incentives are “significant” and “are” the ways of falling price without falling [the] Price, “said Stephen Dyer, partner and general director, co-leader Greater China at the AlixPartners consultant.
He warned that unlike consumers in North America, those in China tend to not cover the reduction of car prices, they prefer to wait for further discounts.
In the midst of some seasonal pressure, several major Chinese companies for electric cars have reported on a sudden drop in domestic delivery in January compared to December. Even the biggest player, BydHe recorded a drop in passenger vehicles at 296,446 in January with 509,440 cars in December. Analysts in general Predict slow growth of industry After rapid expansion in the last few years.
“Now he started a little shaking,” Dyer said. “I would not be surprised if I would shake even more this year because they are still under pressure.”
Challenges of foreign brands
Slowdown Stiffens Competition on the world’s largest car marketin which local players reduced prices and traditional Foreign brands fought adapt to the rapid transition of the country to new energy vehicles. Category, which includes cars only on the battery and hybrid, now More than half of the new passenger cars sold in China.
The share of new energy vehicles in the Chinese passenger cars market is likely to grow – from about 50% this year to 86% to 2035, according to counterpoint projections.
Lee expects more international brands to start their own incentives for Chinese car customers soon. But she predicts that promotions will only last only one or two months and that the end survivor will be local brands.
Twenty new Energy Vehicle brands stopped business in China last year, while 13 entered the market, resulting in a net fall of seven brands, Dyer said, noting that most of the new participants, as well as those who closed themselves, were Chinese companies. Expects “American car manufacturers are probably the following.”
The challenge is not just in China.
Ford engine earned $ 600 million in China Last year, on Wednesday, he announced that her regional boss will now lead a group of International Markets. Executive Director Jim Said Farley in a statement This global success “requires the use of our Chinese export business and successfully compete against Chinese car manufacturers aggressively scaling in these markets.”
