Major car manufacturers compete in electric vehicle pricing battle at Beijing expo

The Chinese giants of the automotive sector gathered in Beijing at the start of the Auto China motor show, engaging in a fierce price war to attract new customers in the rapidly growing electric vehicle market. Chinese manufacturers have seen a significant increase in sales, with 69% of global electric vehicle sales coming from China in December 2023.

William Li, the general director of Nio, a Shanghai-based brand specializing in high-end vehicles, highlighted the improving quality of products offered by Chinese manufacturers. Sales of new energy vehicles in China have surpassed traditional fuel vehicles in the first half of April this year.

With 129 electric car brands in China, only 20 have managed to secure at least 1% of the local market. Chinese consumers, particularly high-net-worth individuals, are looking for smart features in their electric cars, something that local manufacturers excel at providing according to experts.

In addition to local companies like BYD and CATL showcasing their innovations at the fair, traditional automobile giants are also present, struggling to compete with local rivals. Electric car production in China has raised concerns in the West about oversupply and market competitiveness.

As the price war intensifies, companies like Li Auto and Tesla have announced price cuts for their models. The issue of subsidies for Chinese electric car manufacturers has also raised concerns, with the EU launching an investigation into the matter last year. Despite these challenges, Chinese manufacturers continue to innovate and lead the global electric vehicle market.