Price War Begins in World’s Biggest EV Market
Tesla is equipped to increase their sales in China using a price-reduction trap for the second time, which is a blow to the existing Chinese brand in the Chinese market.
It is a simple game of demand and supply. When prices are reduced for a commodity, consumers shift from the expensive commodity, and Tesla fairs in this concept.
Tesla’s Vice President for External Relations in China, expressed on her Weibo account that Tesla’s price reductions are supported by countless engineering advancements.
Last year, Tesla produced more cars than it delivered so it has a full inventory that hasn’t faced the current inflation of 2023-2024.
Reasons given by Tesla
CarNewsChina reported price reductions in China for various trim levels of the BYD Seal. The Luxury, Performance, and Performance AWD versions saw decreases of 9.8%, 8.7%, and 3.3%, respectively.
Impact of price reduction on BYD
Other brands like Chery, Chongqing Changan Automobile, Dongfeng Motor, and others might fade away in this piecemeal fight because they don’t have such a big footing against BYD and Tesla EV giants.
Impact of prices reduction on other brands
Tesla, led by Elon Musk, and BYD, China’s largest domestic car brand, played pivotal roles in the intense price competition witnessed in the fiercely competitive market.
Tesla and China in Electric Vehicle