Key Takeaways
1. Geely Galaxy has introduced discounts of up to 18% on electric vehicles in response to BYD’s recent price cuts.
2. Popular models like the Xingyuan, E5, E8, and L7 EM-i are included in the discount offer, with reductions ranging from RMB 9,000 to RMB 28,000.
3. The discounts are available until June 1 and apply to a total of seven different models.
4. The price competition began after BYD reduced prices by up to 34%, prompting other manufacturers like Leapmotor to follow suit.
5. While consumers benefit from lower prices, the stock values of EV manufacturers have declined on the Hong Kong stock exchange due to pricing strategies.
EV manufacturer Geely Galaxy has entered the recent price competition for electric vehicles in China. In reaction to the price cuts made by BYD just a few days ago, the company is now providing discounts of up to 18 percent.
Discounts On Popular Models
Consumers can receive a discount of RMB 9,000 ($1,250) on the compact Xingyuan, which represents an 11.28 percent reduction from the original price of RMB 68,800. Additionally, buyers can benefit from an extra RMB 3,000 off through Geely Galaxy’s trade-in program and a further RMB 20,000 from the Chinese government.
Other vehicles that are also part of this discount offer include the E5, now priced at RMB 89,800, reduced from RMB 107,800; the E8, which will be available for RMB 134,800, down from RMB 149,800; and the L7 EM-i, now selling for RMB 99,800, down from RMB 125,800.
Limited Time Offers
Geely Galaxy’s promotions are valid until June 1, and they apply to a total of seven different models.
Last week, BYD ignited a new round of price cuts by reducing the prices of two of its product lines by as much as 34 percent, not including government incentives. Analysts quickly saw their predictions of a price war come true when Leapmotor dropped its base model C16 hybrid SUV’s price by 28.24 percent, effective until June 8.
Consumer Benefits and Market Impact
Chinese consumers are the true beneficiaries as electric vehicle manufacturers compete to offer discounts to maintain their market position. Nonetheless, both BYD and its rivals are facing a different consequence; their stock values have decreased on the Hong Kong stock exchange as a result of this pricing strategy.
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