Hamartia Antidote
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Automakers In China Pledge To Restore Stability After Tesla’s Price War
Carmakers in China have signed a pledge to maintain a fair market order following a Tesla-triggered price war.
insideevs.com
The chaotic price war might end in China after Tesla triggered a wave of price cuts early this year.
The ongoing price war in the Chinese auto industry might cool down after 16 automakers and the China Association of Automobile Manufacturers (CAAM) signed a pledge today to maintain a fair market structure at the 2023 China Auto Forum in Jiandang, Shanghai.
Tesla triggered an EV price war globally, after slashing prices of its models on multiple occasions this year. The move caused turmoil in the Chinese automotive market on many fronts: customers who bought Teslas just before the price cuts were furious, while some 30 carmakers were compelled to reduce prices to maintain competitiveness.
There were fears that smaller players who cannot sustain price cuts might be forced to shut shop, partner up or consolidate.
To ease the tensions caused by the price war, all major automakers in China have signed a commitment to safeguard the market framework. The list includes Dongfeng Motor, China FAW, SAIC, BAIC, Changan Automobile, GAC, Chery, JAC, Geely, China National Heavy Duty Truck, Great Wall Motor, BYD, Nio, Li Auto, Xpeng, and Tesla, according to Cnevpost.
Although, note that the letter signed by executives of the aforementioned brands is not legally binding and is self-regulatory. Here’s an excerpt:
For the biggest players in the new energy vehicle (NEV) space, Tesla and BYD, the price war seems to have delivered huge dividends, possibly at the expense of some of their smaller rivals. Sales hit a record high in the second quarter of 2023 for both brands.
Tesla reportedly holds only 7 percent of the market share in China, whereas it has 60 percent of the BEV market share in the US. The signed letter does not guarantee price stabilization, and carmakers might continue to fluctuate prices depending on a myriad of economic factors. Although, it might be an early sign of automakers moving forward in good faith.
Do you think automakers should vouch for a similar truce regarding prices in the US as well? Leave your thoughts in the comments.
hmm...March:
Tesla Model Y Was China’s Top-Selling SUV in March & Took 2nd in Q1
Tesla Model Y became the best-selling SUV in China in March 2023. According to the results of the first quarter, the car became the second best-selling in the country among all types of powertrains and the only electric vehicle to achieve such a high result.
www.tesmanian.com
hmm...May:
Tesla Model Y is China’s top-selling SUV in May
The Tesla Model Y sold a total of 31,054 units in May 2023, according to data from the China Passenger Car Association (CPCA).
www.teslarati.com
hmm...June:
Tesla Model Y tops June best-selling SUV list in China
The Tesla Model Y absolutely crushed June sales and sits atop the list of best-selling SUVs in China for June.
driveteslacanada.ca
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