Chery New Energy Slashes NEV Prices Up to 9,000 Yuan Amidst Industry Price War
Chery New Energy has slashed prices for three of its new energy vehicle (NEV) models, with reductions ranging up to 9,000 yuan ($1,310). The move comes amidst a price war in the Chinese auto industry and Chery's weak performance in 2023.
The price cuts, effective from March 27, 2023, affect the QQ Ice Cream, Little Ant, and Wujie Pro models. The Little Ant's 408km range model saw a price cut of 9,000 yuan (8.74%), the QQ Ice Cream's 120 km Milkshake version saw a 10% cut, and the QQ Ice Cream's 170 km Sundae version saw an 8.02% cut.
Chery New Energy attributed the price cuts to lower raw material prices, particularly lithium carbonate, which has fallen by about 50% from its high point in November 2022. As of March 24, 2023, the average price of battery-grade lithium carbonate in China was 277,500 yuan per ton, and industrial-grade lithium carbonate was 235,000 yuan per ton.
However, the recent price war in the Chinese auto industry, triggered by competitors like Tesla, and Chery's weak performance in 2023 may also be factors. Chery's NEV sales in January-February 2023 were 13,293 units, down 57.6% from the same period in 2022, according to data from the China Passenger Car Association (CPCA).
The price cuts are expected to make Chery's NEV models more affordable and potentially boost sales. However, the industry is facing disruption due to increased consumer wait-and-see attitudes. The China Association of Automobile Manufacturers (CAAM) has called on all parties to help return the industry to normalcy.
