Tagged: China

More Chinese EV makers promise no price cuts as price war intensifies consumer wait-and-see sentiment

EV makers including , and Denza have all introduced 90-day price protection policies.

(Image credit: Neta)

As the auto price war in China continues, some electric vehicle (EV) makers are beginning to make it clear that they will not cut prices in an attempt to dispel the wait-and-see sentiment of potential consumers.

EV makers including Leapmotor, Neta and Denza have all introduced price protection policies, after (NASDAQ: LI) introduced a similar policy and (NYSE: NIO) made it clear that the company would not cut prices.

Leapmotor announced yesterday that for consumers who purchase any of its models during this month, they will get the difference back if the price drops within 90 days or if the company offers additional cash discounts.

This is in line with a policy introduced earlier this week by Li Auto, whose salespeople said it was designed to make clear to consumers that its models would not be reduced in price.

Neta, Hozon Auto's EV brand, announced today that consumers who order its flagship sedan, the Neta S, by April 30 will not have to worry about the model's price dropping within 90 days.

If the price of the model drops within 90 days of the consumer's purchase, Neta will refund the difference.

Notably, along with the announcement of the price protection policy, Neta began offering an RMB 23,000 ($3,340) discount for the lowest-priced model of the Neta S, bringing the model's starting price down to RMB 179,800 from the previous RMB 202,800, valid until the end of April 30.

Neta models on sale also include the Neta V and Neta U, which start at less than RMB 150,000 and are not covered by its price protection policy.

Denza, 's premium brand, announced that if consumers who purchase its vehicles during the month see a drop in official guide prices will receive a rebate for the difference.

Auto and Volvo Car's jointly held Lynk & Co brand also began offering a 90-day price protection policy that expires on April 30.

The increasing number of car companies joining the price war has led to an increased wait-and-see mood among consumers to avoid seeing price cuts soon after purchasing a car.

An NIO executive said yesterday that they noticed Li Auto's move and the company had considered whether to issue a similar policy.

But for NIO, it has previously made it clear that prices will not be lowered, the company's assistant vice president of sales operations Pu Yang said at a media event yesterday, adding that NIO is not only not cutting prices for 90 days, but prices will not change for a longer period of time.

(1 $= RMB 6.8843)

NIO won't get involved in price war, exec says

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Li Auto survey shows Li L8 buyers mainly former German luxury car owners

Among the first owners of the Li L8, those who previously owned a BMW 3 Series were the highest, followed by those who owned a BMW 5 Series and an Audi A6.

US | Li Auto HK

(Image credit: Li Auto)

Li Auto (NASDAQ: LI) is taking market share away from the German luxury car company, a survey by the company shows.

Among the first owners of the Li L8, those who previously owned a BMW 3 Series were the highest, followed by those who owned a BMW 5 Series, according to a survey of 303 first owners of the Li L8 released yesterday by Li Auto.

Among these Li L8 owners, the number of owners of the Audi A6 came in third, the Mercedes-Benz C-Class in fourth, the Audi A4 in fifth and the Audi Q5 in sixth.

Li Auto launched the Li L8, a six-seat mid to large-size SUV, on September 30, 2022, when it was offered in two versions, Pro as well as Max, with starting prices of RMB 359,800 ($52,300) and 399,800 respectively.

On February 8, Li Auto introduced a lower-priced Air version of the Li L8 with a starting price of RMB 339,800 when it launched the five-seat SUV Li L7.

Li Auto delivered 16,620 vehicles in February, up 9.77 percent from 15,141 in January and up 97.53 percent from 8,414 in the same month last year, data it released on March 1 showed.

The company did not release a breakdown of deliveries for these models, though data from the China Passenger Car Association (CPCA) monitored by CnEVPost show that 8,192 units of the Li L8 were delivered in February, bringing the model's cumulative deliveries to 29,773 units since deliveries began last November.

As for the owners' reasons for replacing their old cars for the Li L8, most believe the model is suitable for family use. Targeting family consumers has always been the positioning of Li Auto.

Some said their original cars had problems including constant minor issues and high gas consumption, and some said the Li Auto offered simple car-buying options.

($1 = RMB 6.8801)

Li Auto to build charging stations at 'NIO pace', report says

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CATL, BAIC sign deal to jointly develop battery products

will participate in the vehicle development and production of BAIC-affiliated NEV companies, and provide power battery products and services.

(Image credit: CATL)

BAIC Group, which has lagged behind many of its local counterparts in the transition to electrification, appears to be stepping up its efforts.

CATL and BAIC signed a strategic cooperation agreement on March 13, in which they plan to jointly develop power battery products and tap into the new energy vehicle (NEV) market, according to a press release from the power battery giant yesterday.

CATL will participate in the vehicle development and production of BAIC-affiliated NEV companies and provide power battery products and services, according to the press release.

The two sides will build a close strategic partnership and cooperate fully in power batteries, the release said.

BAIC's efforts in the NEV market are mainly carried out by its subsidiary Beijing Electric Vehicle Co Ltd (BJEV), but its performance has been lukewarm.

BJEV sold 50,179 units for the full year 2022, up 92.06 percent from 26,127 units in 2021, but lags behind most Chinese electric vehicle startups, according to data released by its parent company BAIC BluePark New Energy Technology Co.

In the first two months of this year, BJEV sales were 4,812 units, up 42.16 percent from 3,385 units in the same period last year.

In August 2022, Bloomberg reported that smartphone giant Xiaomi was in talks with BAIC Group to collaborate on the production of electric vehicles, which could see vehicles built by BAIC BluePark and co-branded with .

BAIC Group later told local media that the company had "not heard of this."

That comes after BAIC BluePark announced on July 15 that it plans to raise up to 8 billion yuan ($1.16 billion) in additional shares to no more than 35 specific targets.

The stock offering is intended to increase the company's capital strength, as it continues to increase the size of its business and invest in product development amid the rapid growth of China's NEV industry, BAIC BluePark said at the time.

BAIC BluePark's share price has been weak over the past year and is currently down about 40 percent from its high last June.

($1 = RMB 6.8715)

Xiaomi reportedly in talks with BAIC to jointly build EVs

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NIO won’t get involved in price war, exec says

China's auto industry is facing cyclical swings in the transition to electrification that can't be weathered by price wars and require automakers to stick to brand values, an executive said.

NIO US | NIO HK | NIO SG

An NIO (NYSE: NIO) executive said the company won't get involved in a price war, which has come into focus with the recent sharp price cuts by a large number of internal combustion engine (ICE) automakers.

NIO will not engage in a price war and will not respond to the current market volatility with price cuts, said Pu Yang, the company's assistant vice president of sales operations, at a media briefing today.

NIO believes that the current wave of price cuts is a cyclical fluctuation in the transition from ICE vehicles to smart electric vehicles (EVs), with the main players being ICE models from joint venture brands with limited competitiveness, Pu said, according to minutes shared by several automotive bloggers.

The cyclical fluctuations brought about by this technological revolution can't be crossed by price wars and require car companies to stick to their brand values, he said.

NIO will always ensure the user experience and cope with this cycle by efforts including continuous investment in infrastructure, keeping prices and configurations stable, and full-stack in-house research and development, he said.

More and more car companies are joining the price war, leading to an increased wait-and-see sentiment among consumers to avoid seeing price cuts soon after purchasing a car.

NIO's local counterpart, (NASDAQ: LI), has introduced a consumer price-protection benefit that will refund the difference if the price drops within 90 days of their purchase.

Pu said he saw Li Auto's move and that NIO had considered whether to issue a similar policy, but for the company, it had previously made it clear that prices would not go down.

Not only is NIO not dropping prices for 90 days, but prices won't change for a longer period of time, he said.

He believes the current plunge in ICE vehicle prices in China will be a landmark event and potentially a watershed moment for the auto industry as a whole.

Many of the products that have seen significant price cuts are at the end of their life cycle, Pu said, adding that he doesn't think that will be the norm.

He believes that the large number of models that have seen significant price cuts are appearing quickly, and that these moves will disappear quickly, and that this will be some sort of catalyst for the development of the new energy vehicle (NEV) market.

Pu is optimistic about the whole-year performance of the passenger car market in China, and believes that sales will increase compared to last year.

He mentioned that NIO has seen an increase in the number of visitors to its stores and test drives in recent times, and is confident of growth given the new products the company will have available and the upcoming Shanghai auto show.

The NIO brand will not make prices lower by introducing single-motor models or models without LiDARs, Pu said, reiterating remarks made by William Li, the company's founder, chairman and CEO, during an earnings call earlier this month.

Lower configurations and lower prices are not how NIO wins. The company started from the beginning with a desire to give users a highly configurable, high-quality-of-service experience, he said.

Pu said he suggested to the company's management at the time of the ET5's launch that it could lower the barrier to purchase by eliminating the free battery swap benefit, but that was voted by Li.

The ET5 is a good value when compared to competitors in the same price range as it, especially in terms of intelligence and performance, he said.

NIO believes that improving service quality will be an effective means of dealing with the competition, including adding 1,000 new battery swap stations this year, he said.

The penetration rate of NEVs in China will be higher this year, and the total market segment of high-end EVs will be larger, so NIO is expected to achieve better growth, Pu said.

New products will be an important card for NIO this year, as the company will have more core products on the market this year and delivery is expected to be smoother, he said.

As for the lower-priced EV market, NIO will cover it through sub-brands, including one codenamed ALPS, he said.

China auto price war: BMW dealers offer discounts of up to $14,360 for i3

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China NEV insurance registrations for week ending Mar 12: BYD 37,141, Tesla 17,032, NIO 2,170

This article is being updated, please refresh later for more content.

's insurance registrations last week in China were higher than the previous week's 13,266, while 's were lower than the previous week's 3,345.

 

's new energy vehicles (NEVs) saw 37,141 insurance registrations in China for the week ending March 12, lower than the previous week's 38,932, according to numbers shared today by auto blogger @一路向北BYD.

Tesla vehicles saw 17,032 insurance registrations in China last week, higher than the previous week's 13,266.

NIO was 2,170 last week, down from 3,345 the week before.

registered 4,243 units last week, up from 3,222 units the previous week.

was 1,635 units last week, up from 1,421 units the week before.

BYD's premium brand Denza vehicles saw 1,853 insurance registrations last week, up from 1,808 the week before.

was 1,043 units last week, down from 1,814 units the week before.

BMW's NEVs registered 1,486 insurance units in China last week, down from 1,663 units the week before.

The past week has seen a rare price war in China's auto industry involving not only NEV makers, but traditional internal combustion engine automakers as well.

Rumors surfaced last week that BMW dealers were offering a massive subsidy for the all-electric BMW i3 in China, and that consumers who pay full price for the car can even get the model for RMB 120,000 to 180,000, less than half the retail price.

BMW insiders denied this, but sources at BMW dealers said they are indeed offering discounts, and that these measures were only introduced this month, local media Cailian reported last week.

For the BMW i3 eDrive35 L, which currently has a guide price of RMB 353,900, the price after discounts is RMB 248,000, the report said, citing BMW dealership sources.

Consumers will also receive an additional RMB 6,000 subsidy if they trade in their vehicles, the source said.

The increasing number of car companies joining the price war has led to increased consumer wait-and-see sentiment to avoid seeing price reductions shortly after purchasing a car.

Li Auto has introduced a consumer purchase price protection benefit that covers all of the company's currently available models -- Li L7, Li L8, Li L9.

For consumers who purchase these models, if the prices drops within 90 days of their order, then Li Auto will refund the difference.

The policy, which is available to consumers when they purchase the Li L7, Li L8, and Li L9, is primarily intended to make clear to them that Li Auto will not drop the prices, local media outlet The Paper said earlier today, citing salespeople from the company.

China NEV insurance registrations for week ending Mar 5: BYD 38,932, Tesla 13,266, NIO 3,345

Weekly NEV insurance registrations in China in 2023

WkBYDTeslaNIOXPengLi AutoBMWZeekrNEVNEV+ICE
03/06-03/1237,14117,0322,1701,6354,2431,4861,043988
02/27-03/0538,93213,2663,3451,4213,2221,6631,8144,109515116,238345,340
02/20-02/2639,47310,7053,3571,6855,3871,7921,8552,152401111,983331,238
02/13-02/1937,0265,9133,1741,4634,2382,2711,4431,038329100,408303,101
02/06-02/1231,4176,9633,0451,3964,0626825471,170NA85,572280,741
01/30-02/0524,2808,6431,9489752,2405935543,96411469,692267,843
01/23-01/295,2803,356427210990NA89NANA17,94592,600
01/16-01/2224,7087,4963,0081,0684,903NA657NANA67,500330,400
01/09-01/1540,42012,6542,9631,8174,5272,6871,35942023799,041438,000
01/02-01/0835,9242,1102,8181,5513,7042,1031,5112388077,000290,000

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NIO ES7 and ET5 wait times get longer

delivered 12,157 vehicles in February, including 6,471 ET5s, 649 ET7s and 2,848 ES6s.

(From left to right: EC7, EC6, ET7, ET5. Screenshot on March 14.)

NIO (NYSE: NIO) has seen slightly longer wait times for two of its models in China, the first time since late January that such a change has occurred.

The company's current main seller, the ET5 electric sedan, now has an expected delivery date of 3-4 weeks, up 1 week from the previous 2-3 weeks, information from the NIO App monitored by CnEVPost shows.

The NIO ES7 SUV currently has an expected delivery date of 4-6 weeks, up from about 3 weeks previously.

The NIO App is currently showing 8 models, including the old ES8, ES6 and EC6 based on the NT 1.0 platform, and the all-new ES8, ES7, EC7, ET7 and ET5 based on the NT 2.0 platform.

The EC7 and the new ES8 were launched at NIO Day 2022 held on December 24, 2022, and deliveries are set to begin in May and June, respectively.

The wait time information is unchanged today for all models except for the ES7 and ET5.

(From left to right: All-new ES8, old ES8, ES7, ES6. Screenshot on March 14.)

Yesterday, the NIO App stopped showing the expected delivery time for the ET7. There have been recent rumors that NIO may release a revamped version of its flagship sedan.

The longer wait time for vehicles could be due to increased consumer demand compared to previously, or a lack of parts availability. There is no way to tell exactly why the wait times for the NIO ES7 and ET5 have become longer.

NIO delivered 12,157 vehicles in February, up 42.92 percent from 8,506 in January and up 98.29 percent from 6,131 in the same month last year, according to data it released on March 1.

That delivery volume included 5,037 SUVs, and 7,120 sedans, NIO said. The ET7 and ET5 are sedans, all other models are SUVs.

Separately, data released by the China Passenger Car Association (CPCA) showed the ET5 delivered 6,471 units in February, the ET7 649 units and the ES6 2,848 units. Breakdown figures for other models are not available.

Changes in wait times for NIO models

DateModelPrevChangeLatest
03/14/23ET5 (NT 2.0)2-3 weeks↑3-4 weeks
03/14/23ES7 (NT 2.0)About 3 weeks↑4-6 weeks
03/13/23ET7 (NT 2.0)About 3 weeksNAStop showing
02/14/23ES7 (NT 2.0)3-4 weeks↓About 3 weeks
02/14/23ET7 (NT 2.0)3-4 weeks↓About 3 weeks
02/14/23ET5 (NT 2.0)About 3 weeks↓2-3 weeks
02/6/23ET5 (NT 2.0)3-4 weeks↓About 3 weeks
01/28/23ES7 (NT 2.0)2-3 weeks↑3-4 weeks
01/28/23ET7 (NT 2.0)2-3 weeks↑3-4 weeks
01/28/23ET5 (NT 2.0)7-9 weeks↓3-4 weeks
01/11/23ET5 (NT 2.0)8-10 weeks↓7-9 weeks
01/5/23ET5 (NT 2.0)9-11 weeks↓8-10 weeks
12/29/22ET5 (NT 2.0)10-12 weeks↓9-11 weeks
12/22/22ET5 (NT 2.0)12-14 weeks↓10-12 weeks
12/20/22ES7 (NT 2.0)4-6 weeks↓2-3 weeks
12/13/22ET5 (NT 2.0)13-15 weeks↓12-14 weeks
12/13/22ET7 (NT 2.0)About 2 weeks↑2-3 weeks
12/13/22EC6 (NT 1.0)About 2 weeksNAStop showing
12/2/22ET5 (NT 2.0)21-23 weeks↓13-15 weeks
11/25/22ES7 (NT 2.0)7-9 weeks↓4-6 weeks
11/25/22ET7 (NT 2.0)3-5 weeks↓About 2 weeks
11/23/22ES8 (NT 1.0)About 2 weeksNAStop showing
11/16/22ET7 (NT 2.0)4-6 weeks↓3-5 weeks
11/10/22ES8 (NT 1.0)2-3 weeks↓About 2 weeks
11/10/22ES6 (NT 1.0)2-3 weeks↓About 2 weeks
11/10/22EC6 (NT 1.0)2-3 weeks↓About 2 weeks
11/3/22ES7 (NT 2.0)11-13 weeks↓7-9 weeks
11/3/22ET7 (NT 2.0)6-8 weeks↓4-6 weeks
11/3/22ES8 (NT 1.0)2-4 weeks↓2-3 weeks
11/3/22ES6 (NT 1.0)2-4 weeks↓2-3 weeks
11/3/22EC6 (NT 1.0)2-4 weeks↓2-3 weeks
10/31/22ES7 (NT 2.0)12-14 weeks↓11-13 weeks
10/31/22ES8 (NT 1.0)3-5 weeks↓2-4 weeks
10/31/22ES6 (NT 1.0)3-5 weeks↓2-4 weeks
10/31/22EC6 (NT 1.0)3-5 weeks↓2-4 weeks
10/21/22ES7 (NT 2.0)13-15 weeks↓12-14 weeks
10/21/22ET7 (NT 2.0)11-13 weeks↓6-8 weeks
10/21/22ET5 (NT 2.0)21-23 weeksNAStop showing
10/21/22ES8 (NT 1.0)4-6 weeks↓3-5 weeks
10/21/22ES6 (NT 1.0)4-6 weeks↓3-5 weeks
10/21/22EC6 (NT 1.0)4-6 weeks↓3-5 weeks

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Li Auto rolls out price protection policy amid China auto price war

The price war in China's auto industry has intensified the wait-and-see mood among car buyers, and 's move helps to allay potential consumers' concerns to some extent.

Li Auto US | Li Auto HK

(Image credit: Li Auto)

As the price war in China's auto industry continues, Li Auto (NASDAQ: LI) is telling consumers that it won't be cutting prices, at least they don't need to worry about it in the short term.

An image circulating on the Chinese internet on March 13 shows Li Auto rolling out a consumer price protection policy covering all of the company's currently available models -- the Li L7, Li L8 and Li L9.

For consumers who purchase these models, if the prices drop within 90 days of their order, then Li Auto will refund the difference.

The policy is in effect from March 11 to March 31, and the price reduction Li Auto refers to includes both a drop in the vehicle's official prices and the cash-off benefits the company offers, according to the image.

In a report today, local media outlet The Paper quoted Li Auto salespeople as saying the image is true.

The policy, which is available to consumers when they purchase the Li L7, Li L8 and Li L9, is primarily intended to make clear to them that Li Auto will not be dropping prices, the salesperson said.

On March 2, Li Auto founder, chairman and CEO Li Xiang said on Weibo that the price of lithium carbonate would be drastically reduced no matter what because the demand is far less than expected.

He said at the time in the comments section of that Weibo that Li Auto's models would not be reduced in price.

Notably, a wave of price cuts then began in the Chinese auto industry, with some internal combustion engine automakers starting to offer huge discounts.

The increasing number of car companies joining the price war has also led to an increased wait-and-see sentiment among consumers to avoid seeing price cuts soon after purchasing a car.

Li Auto's move will partly contribute to allaying the company's potential consumers' concerns and thus help it achieve its sales targets.

Li Auto has an internal goal of 25,000-30,000 monthly deliveries and will aim to meet that goal in the second quarter, its management said in a February 27 analyst call after announcing fourth-quarter earnings.

The company delivered 16,620 vehicles in February, up 9.77 percent from 15,141 in January and up 97.53 percent from 8,414 in the same month last year.

Li Auto guided for deliveries of 52,000 to 55,000 vehicles in the first quarter when it reported fourth-quarter earnings. The company's delivery figures for February mean it is on track to deliver 20,239 to 23,239 vehicles in March.

China auto price war: BMW dealers offer discounts of up to $14,360 for i3

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