Another Chinese EV maker announces discounts after BYD sparked price war

EV maker Geely Galaxy has joined the latest EV price war in China. The company now offers up to 18 percent discounts in response to BYD’s price slashes announced a few days ago.

Customers can save RMB 9,000 ($1,250) on the compact Xingyuan, or 11.28 percent, on the normal selling price of RMB 68,800. They can slash a further RMB 3,000 and RMB 20,000 from Geely Galaxy’s trade-in program and the Chinese government, respectively.

Other models qualifying for the discount include the E5, which will sell for RMB 89,800, down from RMB 107,800; the E8, which will go for RMB 134,800, down from RMB 149,800; and the L7 EM-i, which will sell for RMB 99,800, down from RMB 125,800.

Geely Galaxy’s sales last till June 1 on seven models.

BYD triggered another race to the bottom last week when it discounted two of its product lines by up to 34 percent, in addition to government subsidies. Analysts’ prediction of a price war quickly came true when Leapmotor loped off 28.24 percent on its base model C16 hybrid SUV until June 8.

Chinese car buyers are the real winners as EV makers rush to announce their own discounts to protect their market share. However, BYD and its competition are paying another price; in the aftermath, their stocks traded lower on the Hong Kong stock exchange.