Xpeng has bowed to an intensifying price war in ChinaтАЩs electric-vehicle market, cutting sticker prices by as much as 13 percent after TeslaтАЩs surprise cuts at the start of the year.
The starting price of the base model of XpengтАЩs G3i SUV dropped to 148,900 yuan ($22,000) from 168,900 yuan, according to a post on the companyтАЩs official Weibo page.
P7 sedan prices were cut to 249,900 yuan, while the sticker price on the newly released G9 model stayed the same.
China is the worldтАЩs biggest EV market and an increasingly competitive battleground for international and local automakers.
After cutting prices on its popular, Chinese-made Model Y and Model 3 cars in October, Tesla followed with another round of reductions on Jan. 6.
Mercedes-Benz cut prices on two EVs by as much as $33,000 in November, while Huawei-backed Aito this week lowered them by up to 31,000 yuan.
XpengтАЩs shares slumped after TeslaтАЩs latest price cut, with Citigroup analyst Jeff Chung saying the automaker would тАЬsuffer the mostтАЭ due to the impact on sales of its P7 and G7 models.
Guangzhou-based Xpeng unveiled its G9 SUV in September, hoping for a boost to sales that were impacted by COVID-19 lockdowns and restrictions in China.
тАЬWe are going to further improve supply-chain management, cost control, production efficiency and customer services,тАЭ Xpeng said Tuesday, describing the price cuts as a тАЬnormal adjustment.тАЭ
