Amidst rising competition, Li Auto, a Chinese automaker specializing in extended range electric vehicles, has announced further price reductions in its domestic market. The company will reduce prices on its L7, Li L8, Li L9, and Li MEGA models by 18,000 to 30,000 yuan (US$2,485 to US$4,142). Additionally, customers who purchased these vehicles earlier this year will receive cash refunds.
This move by Li Auto follows similar price cuts implemented by other EV manufacturers in China this year, including Geely Auto, GAC Aion, Leapmotor, and Xpeng. The decision highlights the fierce competition within the Chinese EV market, where companies are resorting to aggressive pricing strategies to gain market share.
Tesla Inc., another major player in the EV industry, recently announced another round of price reductions across key markets, including China. The starting price for the revamped Model 3 in China was cut by 5.3% to 231,900 yuan (approximately US$32,000).
The price cuts by Li Auto and other EV manufacturers have had a negative impact on their share prices. Li Auto’s shares plunged by 6.1% to about US$25 on the news, while Tesla’s shares fell by 2.1% to about US$144.
