BEIJING: The competition in China’s New-Energy Vehicle (NEV) industry has intensified as both local and international brands rush to announce price cuts and release new models to capture a larger share of the market, according to Global Times.

Industry analysts said that the fierce competition comes amid the transition of China’s NEV sector from a period of a large number of investments to a mature market, and the entire market will be further concentrated on a couple of leading firms.

In April alone, more than 10 NEV brands announced price cuts or promotional activities. Chinese automaker Li Auto reduced prices by about 5 percent on four of its models and offered refunds to owners who purchased those models earlier this year. US automaker Tesla also trimmed prices on its Model 3 and Model Y vehicles.

China’s vehicle market experienced a strong start in the first quarter of 2024, with NEVs maintaining a market share above 30 percent. The upcoming Beijing International Automobile Exhibition is expected to d
rive domestic sales, with 117 models set to make global debuts, including offerings from international brands and new car brands like Nio, Xpeng, and Xiaomi.

Industry experts remain optimistic about China’s auto market in the second quarter, citing the exhibition and supportive trade-in policies as catalysts for domestic car spending.

Source: Emirates News Agency