Price War

Tesla has reduced the price of its 830-km Model 3 in China by RMB 10,000 yuan ($1,400), less than a month after its August 12 launch.

BYD has reduced the price of its Qin L EV by RMB 10,000 ($1,400) and introduced a new variant equipped with the DiSus-C body control system.

This is expected to enhance the appeal of Nio models and reduce complaints about their relatively low range.

Luxeed is offering consumers who buy its cars before July 31 a cash discount of RMB 20,000 ($2,790), becoming the latest participant in China's auto price war.

BYD has slowed production and expansion in recent months, reducing shifts at some of its Chinese factories and delaying plans for new production lines, Reuters reported.

BYD's Stella Li said China's EV price war is unsustainable and explains why the company cut prices.

Tesla is offering Chinese customers who purchase its cars through referral program a discount of RMB 8,000 ($1,110) on optional body paint in June.

The disorderly price war has intensified vicious competition and will further squeeze corporate profit margins, CAAM warned.

Chery is offering discounts on a number of models, with a combined discount of up to 47 percent after subsidies.

Geely Galaxy has started offering limited-time discounts ranging from 8 percent to 18 percent on seven models.