2024-04-22 12:42:44
The measure taken by the company threatens You’re here Linked to the reduction in prices of all its models in China Launching a new wave of price war raging in the country, Li Auto immediately responded by lowering the prices of its new models and refunding buyers’ money.
On Monday, Li Auto announced a price reduction of between 6% and 7% on all its products, so the price of the five-seater L7 sports car currently starts at 301,800 yuan ($41,700).
Buyers who have already ordered a car but have not yet received it can benefit from the new price, in addition to the fact that the Chinese company will reimburse the differences in cash to owners of its current cars of the 2024 model. Li’s shares Auto fell 6.9%. in stock exchanges.Hong Kong“.
Tesla has reduced its prices UNITED STATES China and Europe, following their disappointing sales in the first quarter, contributed to inventory volume inflation, and the price of the modified car “Model 3” in China fell to 231,900 yuan from 245,900 yuan, returning to the special price at which it was first offered. As for the “Model Y” car, the company reduced its price to 249,900 yuan, which is the cheapest it has been in at least 5 years.
The price war has raged in China’s electric car market since late 2022, when Tesla began lowering prices.
This war has intensified over the past year with stressed automakers trying to meet sales targets, and it has shown no signs of calming down this year, with BYD, the leading company in this market, cutting prices on some of its most popular cars. , including the Seagull sedan,” for less than $10,000.
Tesla is expected to reveal a 40% drop in operating profits, and the first drop in revenue in four years, on Tuesday when it announces its first-quarter earnings.
The company’s CEO, Elon Musk, ordered the largest layoffs in the company’s history and set its future on the next generation of a new self-driving car called “Robotaxi.”
Tesla’s market share in China fell to regarding 6.7% in the final quarter of 2023, from 10.5% in the first three months of the same year, according to calculations by Bloomberg based on data from the China Passenger Car Association.
The automaker recently reduced its production schedules at its Shanghai factory, according to a report published by Bloomberg last month.
Shipments from Tesla’s Shanghai factory, which produces electric cars for the Chinese market and exports to other markets in Asia, Europe and Canada, also declined in the first two months of 2024 compared at the same time last year, despite the increase in the total. passenger car sales in China.
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