The Chinese market has been experiencing a price war since the beginning of the year, and it has reached a crucial point. Manufacturers are now able to offer plug-in hybrid cars for a starting price that is less than some of the most economical cars with internal combustion engines.
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So far, four automakers (SAIC-GM-Wuling, Changan, Neta, and BYD) have begun offering cars for less than 100,000 yuan, or roughly $13,900 in today’s currency. This represents a psychologically significant price barrier for buyers. BYD was in fact, the first to tap the 100,000 yuan threshold with the Qin Plus DM-i, a plug-in hybrid sedan, the price of which was lowered by 20% last week, and it now starts at 79,800 yuan (around $11,100).
Other cars to witness a lucrative price drop include the Wuling Starlight hybrid sedan, now priced at 99,800 yuan (around $13,900); the Changan Qiyuan Q05 PHEV SUV has its price dropped to 73,900 yuan (around $10,300); and Neta X SUV which now starts at 99,800 yuan (around $13,900).
These reductions help price these plug-in hybrids competitively against conventional internal combustion vehicles. For instance, in China, the Toyota Corolla starts at 122,800 yuan (around $17,000) and the Volkswagen Lavida sedan, starts at 94,000 yuan (around $13,000). Experts believe 2024 would mark a “critical” turning point for the electrified car market. The moves will probably succeed, says Zhao Zhen, the sales director of a dealership in Shanghai.
“Lower battery costs have enabled electric carmakers to adopt pricing strategies that enable them to compete with petrol car manufacturers. Since more Chinese motorists now prefer electric cars to conventional petrol-powered vehicles, BYD and its EV counterparts will gain the upper hand with price cuts.”
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com
