Reduced Price on Electric SUV: Toyota slashes bZ4X model's price in the Chinese market by approximately $4,420, as announced on Twitter.
In the bustling electric vehicle (EV) market of China, a wave of price reductions is causing a stir. The competition is fierce, with companies slashing prices to stay afloat and maintain market share in the face of oversupply. This trend, described as "unhealthy" by Great Wall Motor Chairman Wei Jianjun, has led to a struggle for profitability among many Chinese automakers.
One of the companies that have joined the price war is BYD, a market leader that recently announced a new round of price cuts on 20 models, including its entry-level Seagull, initially priced at 55,800 yuan ($7,789). Following BYD's move, several competitors have also lowered their prices to keep up.
However, not all companies are directly engaging in price cuts. Toyota, for instance, is benefiting indirectly from cost reductions in the Chinese market. Japanese company Nidec is building a mostly 'made-in-China' EV motor for Toyota, helping to reduce costs and allowing Toyota to compete more effectively in China's ultra-competitive EV market.
Among the EVs that have seen price reductions is the GAC Toyota bZ4our X (Twitter) profile, an electric SUV launched in China on October 10, 2022. The bZ4our X is now available at a starting price of RMB 169,800, a decrease of 30,000 yuan ($4,420). The vehicle comes in two versions: front-wheel drive and four-wheel drive, with the four-wheel-drive variant boasting a maximum total power of 160 kW and maximum torque of 337 Nm.
The impact of these price cuts on sales is yet to be seen, although the bZ4our X sold 1,487 units in China in December, ranking 70th among all-electric models sold in China. It's worth noting that joint venture brands, such as Toyota, are seen as significantly lagging behind local Chinese automakers in their electrification transition.
Tesla, with its factory in Shanghai producing the Model 3 and Model Y, has also followed suit with price cuts. The starting price of the entry-level, rear-wheel-drive Model 3 in China is now RMB 229,900 yuan.
Other companies, such as Nio, peng, and Huawei-backed AITO, have also joined the price war, offering purchase discounts and low-interest loan offers to attract consumers. The competition is fierce, but one thing is certain: the electric vehicle market in China is undergoing a period of significant change, driven by price reductions and intense competition.
Tesla, with its factory in Shanghai, has reduced the starting price of the entry-level, rear-wheel-drive Model 3 in China to RMB 229,900 yuan.
Chinese automaker Xpeng, similar to Tesla, is also participating in the price war, offering purchase discounts and low-interest loan offers to attract consumers.
Similarly, Nio, another player in the automotive industry, has joined the trend, slashing prices to compete.
In the competitive EV market of China, battery-powered sports cars such as those from Huawei-backed AITO may also lower their prices to maintain market share, contributing to the ongoing wave of price reductions.
