Many Chinese car companies have announced price cuts.

April 1st, “the price cut of AITO M7 by 20,000 yuan” trended on Weibo.

It is understood that AITO, under Huawei Hongmeng Smart Driving, has made adjustments to the rights and interests of the new AITO M7 model. The starting price of the new AITO M7 Plus rear-wheel drive version has been adjusted to 229,800 yuan, a direct reduction of 20,000 yuan. However, the original technology comfort package including HUD head-up display, main driver headrest audio, electric door suction, and crystal gear shift needs to be reselected for 15,000 yuan, which means that the actual price reduction is only 5,000 yuan, and the price of the M5 Plus four-wheel drive version remains unchanged. In addition, the new AITO M7 smart driving version, whether it is a four-seat or five-seat, rear-wheel drive or four-wheel drive, has a direct price reduction of 10,000 yuan, and the above-mentioned technology comfort package is still provided for free. In general, the new M7 directly reduces the price by 20,000 yuan to lower the threshold and gives the buyer the right to purchase the technology comfort package. Except for the Plus rear-wheel drive version, all other models have a price reduction of 10,000 yuan, which will more effectively increase the purchasing desire of consumers.

The new AITO M7 was officially launched on September 12, 2023, offering 5 configuration models and two layouts of five and six seats to choose from, with a starting price range of 249,800 to 329,800 yuan, which is in the same price range as the medium-sized SUV AITO M5 of the same brand. Compared with the old model, the new AITO M7 achieves smart range extension, with longer range and lower energy consumption, and provides two-wheel drive and four-wheel drive versions. Simply put, the new AITO M7 not only reduces the price but also adds configuration. Its price is comparable to the AITO M5, which is positioned as a medium-sized SUV. With the blessing of Huawei Smart Driving, it has detonated the market as soon as it is launched. Since October 2023, the sales of AITO M7 have continued to exceed 10,000 units, becoming a veritable blockbuster model.

With the explosion of the new M7, after entering 2024, AITO has also become the top of the new forces. In January, AITO took the first place in new force sales with 33,000 vehicles. In February, it exceeded Li Auto with 21,100 vehicles, of which the new M7 contributed the most, with 18,500 vehicles. In March, its sales were 31,700 vehicles, still the best-selling new force, of which the new M7 was 24,600 vehicles, accounting for 77% of total sales, and the M9 was 6,243 vehicles.

This time, the purchase threshold of the new M7 has been lowered, which will have a significant impact on the Li Auto L6. It is understood that Li Auto will launch the Li Auto L6 in the second quarter. This is the lowest-positioned model under Li Auto, with a price below 300,000 yuan, and it bears the burden of future market growth of Li Auto. If the pricing of the Li Auto L6 is higher than that of the new AITO M7, it will still have a great impact on Li Auto, after all, the new M7 is backed by Huawei, with a larger size and a cheaper price.

Apart from AITO, many brands also announced price reductions today. On April 1st, XPeng Motors announced that its 2024 XPeng G9 will enjoy intelligent driving subsidies for immediate purchase, with a maximum discount of 20,000 yuan for existing vehicles, and the discounted price of existing vehicles starts at 243,900 yuan. In addition, XPeng also introduced a number of optional discounts, including 50% discount for the interstellar green and Xingque gray car colors for a limited time, and 20% discount for the intelligent dual-chamber air suspension for a limited time. As the flagship model of XPeng Motors, the initial suggested retail price of G9 was as high as 309,900-469,900 yuan. Due to a series of issues such as the overly complex optional configuration logic, the sales were poor and did not meet expectations. Later, XPeng Motors introduced the 2023 G9, with a slight reduction in configuration, and the suggested retail price was also lowered to 263,900-359,900 yuan, which slightly eased the sales decline of G9.

Wuling Motors announced that its Wuling Binguo launched a maximum discount of 10,000 yuan, and the discounted price range is 55,800-83,800 yuan. The car is positioned as a pure electric small car, offering three versions of 203 kilometers, 333 kilometers, and 410 kilometers (all in the CLTC working condition).

ZEEKR Motors announced that its ZEEKR 007 launched a rear-wheel drive enhanced version, with an official guidance price of 209,900 yuan. The new car adds a value of 12,000 yuan of the Technology Total Sense Kit (ZEEKR Sound self-developed advanced audio system, 35.5-inch AR-HUD, 15.05-inch 2.5K OLED sunflower center console screen, dynamic flowing Ice Block crystal ambient light and smart fragrance system) on the basis of the original rear-wheel drive version, and a value of 8,000 yuan Comfort Kit (steering wheel electric 4-way adjustment/heating/ID memory, front seat ventilation/massage/cushion extension, 4-way lumbar support for the co-pilot, and rear seat heating and rear seat backrest electric adjustment).

NIO announced that in response to the call of the State Council’s “Action Plan for Promoting Large-scale Equipment Renewal and Consumer Goods Replacement”, it launched a maximum of 1 billion yuan of oil vehicle replacement subsidies. From now on, oil vehicle users who replace NIO’s 2024 new models will receive an additional 10,000 yuan of optional equipment fund subsidy on top of the existing policies.

Geely Automobile announced that some of its models can enjoy purchase discount policies, which is valid until April 30th. After comprehensive discounts, the Emgrand L HiP has the largest discount, with a maximum discount of 53,000 yuan, and the discounted starting price is 82,800 yuan. The starting price of Xingyue L is 117,700 yuan, the starting price of Xingrui is 86,700 yuan, and the Bo Yue COOL, Bo Yue L, and the fourth-generation Emgrand can enjoy a maximum of 19,000-21,000 yuan for old-for-new comprehensive discounts. After the discount, the starting price of the fourth-generation Emgrand is 51,900 yuan. In addition, Haoyue PRO and Haoyue L respectively enjoy a maximum of 14,000 yuan and 30,000 yuan of comprehensive discounts, and the Binyue, Binyu COOL, ICON, and Jiaji L also enjoy discounts ranging from 14,000 to 16,000 yuan respectively. It is worth noting that Panda mini can enjoy a cash discount of 10,000 yuan, and the discounted starting price is 29,900 yuan.

Chery Automobile also announced that the purchase tax for designated models will be fully exempted within a limited time. This billion-yuan subsidy replacement season activities cover a variety of models such as Tiggo 8 PRO Champion Edition, Tiggo 8 PLUS Champion Edition, Tiggo 9, Arrizo 8 High Energy Edition, and EXPLORE 06. Lingbao Automobile announced that all models under its brand have launched an official limited-time purchase subsidy policy, with a subsidy range of 9,000 yuan to 10,000 yuan. Among them, the starting price of Lingbao BOX after subsidy is 29,900 yuan, the price of Lingbao Uni after subsidy is 25,800 yuan, and the price of Lingbao COCO after subsidy is 29,900 yuan. The official purchase subsidy time limit is from April 1 to April 30.

Jiyue Automobile will update its sales policy from now on. For the ternary lithium battery pack with 100-degree battery selection, it will enjoy a 10,000-yuan discount on the whole vehicle. In addition, the whole Jiyue series will give a DC home charging pile for car purchases. In addition to Chinese brands, joint venture brands have also announced to join the price reduction camp. FAW-Volkswagen officially announced the addition of a limited-time subsidy policy, including an additional cash subsidy of 5,000 yuan and a replacement subsidy of 4,000 yuan. SAIC Volkswagen launched the Lavida New Ace Outstanding Edition, offering the Outstanding New Yi Edition and the Outstanding New Wish Edition models, with prices of 79,990 yuan and 87,990 yuan respectively. The former was reduced by 20,000 yuan, the latter was reduced by 22,000 yuan, and the configurations remained unchanged. It is understood that the official also launched a limited-time policy such as full exemption of purchase tax, up to 30% discount in 3 years/20% discount in 2 years/10% discount in 1 year for value retention and renewal.

In addition to the price reduction of enterprises, many places have also launched “trade-in and replace” auto consumption subsidy policies and preferential activities recently to promote auto consumption, shorten the replacement cycle of consumers, and activate new market momentum. In addition to the purchase discounts offered by various car companies, Chongqing, Jiangxi, Zhejiang and other places have also launched corresponding government subsidies.

Industry insiders said that the recent low price of lithium carbonate has created conditions for the price reduction of new energy vehicles. In recent years, the domestic new energy vehicle industry has achieved a double improvement in technology and scale, making pure electric vehicles have the strength and confidence to reduce costs and prices, and respond to the off-season market. In 2024, the growth rate of leading new energy vehicle companies will face pressure, so the price war will continue, especially in the mainstream price range of 100,000 yuan to 200,000 yuan. The new energy vehicle market shows the characteristics of fission. With the maturity of the segmented markets of each technology route, new models will greatly enrich consumers’ choices, but it may also intensify the homogeneous competition. Cui Dongshu, secretary-general of the National Passenger Car Federation, once said, “2024 is a critical year for new energy vehicle companies to gain a foothold, and the competition is destined to be very fierce.”

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