The Chinese pricing war EV is heated. What’s the big discounts?

Beijing – Competition in the Chinese electric vehicles has just become tougher with the consequences for the domestic economy and even in the global auto part.

A lasting gad Bake Last week announced A lot of discounts – some of almost 30% or more – in several its models only for battery and hybrid models. The compact car Shaighull, which has a budget, saw that the cost decreased to $ 55,800 ($ 7,750).

Other large Chinese carmakers started to follow the example.

“This time has made the branch quite nervous,” said Zhong Shi, an analyst from the Chinese car dealership association, translated by CNBC.

“The industry is in a (state) relatively big shock,” he said, noting that the smaller automakers are now more worried about their ability to compete.

The industry was a rare bright spot in the economy that watched slower growth and unsuccessful consumer demand. Part of the latest Beijing attempt has been consumed, included subsidies for new energy vehicles, a category that includes only battery and hybrid cars.

“The latest competition at the cost of the car emphasizes how the imbalance on the demand for delivery continues to flow on the deflation,” Chinese Chinese chief economist Morgan Stanley Robin Sing said.

“Rhetoric grows about the need for balance (to greater consumption), but the latest developments believe that the old model caused by supplies remains intact,” he said. “So the reflection is likely to remain elusive.”

The Chinese electric car market has already been in the price war over the last two years, partially fueled by Tesla.

But this time traditional automakers, including state possessions Half of new cars sold in China.

Last week the chairman of the beautiful wall engines Wei Jianyun warned of “Evergrande” In the Chinese car industry, which has not yet exploded, comparing the fast -wide EV industry with the inflated real estate sector. In an interview posted on May 23, in an interview posted on May 23, the head of the private sector appeared with Chinese media Sina.

Once a real estate giant in China, Evergrande by default by its debt in late 2021 As the real estate market dropped after Beijing hacked a high level of company debt. Demand for homes also fell after tougher state rules, leaving the developer who is fighting for financing the rest of the construction units.

As the Chinese media outlets on the financial situation of the automakers, Baid refuted the reports on Wednesday that he was overly putting pressure on one of his dealers on cash flow. Dealer Ginan Tianshen in the Eastern province of Shandong did not immediately respond to a CNBC request for a comment. Byd sent CNBC to his statement to Chinese media.

In the early years The Chinese state is supported effort Become a world leader In the new industry, the Ministry of Finance stated that at least five companies had revealed cheated the government over 1 billion yuan (140 million dollars). The high -level policy encouraged the floods of startups, of which only a few handfuls survived.

Unlike this, the average price of the new car in the US was 48 699 dollars in Aprilup Almost 1% from two years earlier, According to CNBC data calculations with Cox Automotive. The average price of electric vehicles last month was more than $ 59255.

Last round of BYD price decline Include a higher -grade model for about 200,000 yuan, such as its flagship Sedan Han Electric. Reuters noted that the latest Han model released in February was About 10% cheaper than in the previous versionAccording to his calculations.

The Chinese car giant, which supported Warren Buffett in the early years, quickly seized the market share in China with a wide range of cars at different prices. A reports the company Last year, net profit growth by 49% to 14.17 billion yuan. The total current commitments increased by more than 60% to 57.15 billion yuan. Monetary and monetary equivalents decreased to 102.26 billion yuan.

In March Zeekr, who supported the gels, said it was Release free of your advanced assistance system for driversWhile Tesla tried to charge their customers for a similar function. The month earlier Baid announced that the drivers are running up to more than 20 his car Models.

In the last few months, China’s leading leaders have increasingly urged to fight unproductive business competition known as “involution”. The term was mentioned in the annual report on the work of the Prime Minister in March and at a meeting of the market regulator last week calling for “comprehensively Fixing “involutionary” competition“

However, great efforts to produce electric vehicles with a lower cost in China and the next step of automakers to expand other markets caused concerns about the impact on the car industry of other countries.

A European Union hit rates on imports of Chinese electric vehicles After checking companies for the use of state subsidies in production. US too imposed duties 100% on Chinese electric carsOvercoming the hope that vehicles can reach the second largest car market.

But the EU had a limited effect. In April, Baid put off Tesla in Europe For the first time, according to Jatt -Dynamics. Sales of Europe Tesla This month was immersed in 49%According to the European Association of Car Manufacturers.

– Bernice Ooi in this report submitted to this report CNBC