March 20 news, today after the Spring Festival, the Chinese auto market has launched an unprecedented price war, especially in the new energy vehicle sector.
Today, the CPCA released an article discussing the new energy price war, stating that the price reduction pace in this price war has been astonishing.
The CPCA analysis shows that from the perspective of the price reduction pace, the price reductions in February and March of 2024 have reached an unprecedented level. In February, 25 models were reduced in price, and in the first half of March, 23 models were reduced in price, which is also a shocking level compared to history.
The CPCA also stated that the 2024 price war is different from previous years, as the price war in new energy vehicles is unusually fierce, forming a unique phenomenon:
"New energy vehicles have undergone drastic price reductions, but since the current promotion of fuel vehicles has reached a certain bottom line, this has led to a situation where new energy vehicles are independently reducing prices and eroding the fuel vehicle market."
The CPCA stated that one of the characteristics of this price war is that it directly breaks through the original vehicle price floor, rather than conducting promotions through price increases without price reductions. Therefore, this analysis only focuses on situations where the previous price floor has been broken, which is the narrow definition of price reduction behavior.
The scale of price reductions in 2024 has already reached half of the total for last year. Among them, pure electric vehicles and plug-in hybrid models have the most significant impact, while fuel vehicles have a relatively small price reduction range.
