Chinese EV Makers Scramble To Offer Incentives To Compete With Tesla And “Disruptive” Xiaomi
The competition in China’s EV world continues to heat up, as the market becomes more and more saturated.
The country’s automakers are aggressively trying to take advantage of Tesla’s recent price hikes by offering incentives, while at the same time gearing up to compete with the “disruptive” entry of Xiaomi into the market, Bloomberg reported this week.
The report notes that on April 1, Shanghai-based Nio unveiled an incentive plan worth up to 1 billion yuan ($186.4 million) to encourage gasoline vehicle owners to switch, offering perks like battery swaps, extra driving function subscriptions, and a Nio smartphone.
At the same time, Xpeng reduced prices on certain vehicles by up to 20,000 yuan, and Chery Automobile introduced free purchase tax on select models and improved trade-in values.
The heavy promotions stand at odds with Tesla’s strategy in China, which saw the automaker increase its Model Y SUV price, a move previously hinted to boost pre-hike demand and sales.
However, despite anticipation of the price rise, Tesla had to cut production at its Shanghai facility due to falling shipments in early 2024, highlighting the fierce competition in China’s vast car market.
