logo
Why competition is heating up in China's sub-US$20,000 EV segment

Why competition is heating up in China's sub-US$20,000 EV segment

Competition in mainland China's budget electric vehicle (EV) segment is likely to intensify as consumers seek value for money, according to dealers and analysts.
With at least a dozen intelligent EVs under 150,000 yuan (US$20,864) – from
BYD to
Leapmotor – qualifying for up to 20,000 yuan in subsidies, consumers are spoiled for choice. At the same time, a fierce price war is pulling in budget-conscious buyers.
'Consumption downgrade has spread to the car market as consumers are increasingly shunning expensive models,' said Zhao Zhen, a sales director at Shanghai-based dealer Wan Zhuo Auto. 'But leading Chinese carmakers are able to churn out high-performance EVs at about half the prices of Tesla's Model 3 and Model Y.'
Conventional and battery-powered cars priced between 100,000 yuan and 150,000 yuan accounted for a third of overall sales, or about 7 million units, on the mainland last year, according to data from the China Passenger Car Association (CPCA).
Xpeng chairman and CEO Xiaopeng He and brand ambassador Ouyang Nana pose for photos with the Mona M03 Max EV at an event in Beijing on May 28. Photo: AP

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

China-Niger ties challenge Beijing's cornerstone non-interference policy
China-Niger ties challenge Beijing's cornerstone non-interference policy

South China Morning Post

timean hour ago

  • South China Morning Post

China-Niger ties challenge Beijing's cornerstone non-interference policy

Since the 2023 coup that ousted the president of Niger , Mohamed Bazoum, Beijing has consistently sought to strengthen relations with the country's military government. In line with its non-interference policy , one of the cornerstones of China's foreign policy that states that countries should not meddle in the domestic political, economic or social systems of other countries, China swiftly embraced the military junta in Niger. Notably, China provided the new military government with a substantial financial lifeline of about US$400 million in the form of an oil-backed loan to be repaid via crude oil shipments over 12 months, which helped address an immediate cash shortage. 16:09 How China is reshaping its economic ties with Africa How China is reshaping its economic ties with Africa Yet relations with China have been strained since March when the junta expelled three Chinese oil executives over disparities between the salaries of expatriate staff and lower-paid local workers and revoked the licence of a Chinese-owned hotel in Niamey, citing 'discriminatory practices and administrative violations'. The dispute escalated last month when Niger ordered China National Petroleum Corporation (CNPC) and its Soraz oil refinery to terminate the contracts of expatriate employees with more than four years' service. Observers said Niger's dispute with Chinese oil companies underscored the limits of Beijing's non-interference policy – a long-standing Chinese policy which, in practice, meant China remained essentially regime-agnostic. This approach, while intended to avoid entanglement in domestic affairs, incurred significant economic costs for Beijing, especially as some nations were experiencing a rise in nationalism, they added. According to Paul Nantulya, a China-Africa specialist from the National Defence University's Africa Centre for Strategic Studies in Washington, China's policy entails regime strengthening since Beijing tends to invest heavily in the economic priorities of the regimes or ruling parties in question.

Hong Kong leader rejects taxi licence buy-back amid ‘irreversible' ride-hailing trend
Hong Kong leader rejects taxi licence buy-back amid ‘irreversible' ride-hailing trend

South China Morning Post

timean hour ago

  • South China Morning Post

Hong Kong leader rejects taxi licence buy-back amid ‘irreversible' ride-hailing trend

Hong Kong's leader has rejected a proposal from the taxi industry for the government to repurchase licences that have depreciated in recent years due to competition from online ride-hailing services, claiming that the licences had always given cabbies exclusive rights. Advertisement Chief Executive John Lee Ka-chiu on Tuesday also said online ride-hailing was an 'irreversible trend', as he pledged to provide a regulatory framework for such platforms as soon as possible while urging taxi drivers to improve their services amid public criticism. Some leaders within the taxi trade had recently called on the government to repurchase licences for HK$5 million (US$637,100) each. They contended that its value had consistently depreciated with the rise of online ride-hailing platforms like Uber. The value of a licence has plummeted from a historic high of HK$7 million to below HK$3 million in recent months, resulting in significant financial losses for owners. 'We must be very cautious when it comes to using public funds,' Lee said when asked if he would consider the suggestion. Advertisement Lee argued that the licenses had given the sector an 'exclusive privilege' to operate the vehicles, such as using the taxi ranks, picking up passengers in designated restricted areas and getting customers from the street. 'These usages of the taxis, which are granted for a long time under the exclusive privileges of the license, have led to a direct profit on these licenses. It has also allowed taxis to gain profits under this form of operation for a long time,' he said.

As Macau seeks economic diversification, 11 satellite casinos to cease operations
As Macau seeks economic diversification, 11 satellite casinos to cease operations

South China Morning Post

time2 hours ago

  • South China Morning Post

As Macau seeks economic diversification, 11 satellite casinos to cease operations

By the end of the year, 11 satellite casinos in Macau will cease operations, as the government seeks an economic diversification away from gambling and into exhibitions, entertainment and technology. Satellite casinos are small casinos operated by third parties but under concessionaires' licences. Analysts said the impact on concessionaires was 'broadly neutral', but some firms should see a more immediate increase in table yields. SJM Holdings said it would shut down seven of its nine satellites this year and buy the two others, Ponte 16 and L'Arc Macau, before directly managing them. Galaxy Entertainment Group said it would close the Waldo Casino 'due to commercial considerations', and Melco Resorts & Entertainment said it would shut down the Grand Dragon Casino along with three Mocha Club slot venues: the Mocha Hotel Royal, Mocha Kuong Fat, and Mocha Grand Dragon Hotel. On Monday, Tai Kin Ip, Macau's secretary for economy and finance, said there were around 5,600 local employees at the satellite casinos. He said 4,800 were employed by the concessionaires and 800 worked for the satellite casino operators. In 2022, the Macau government amended its gaming laws before granting six new 10-year casino concessions. It gave satellite casinos three years to shift from a profit-sharing model to a structure where they are directly owned by licensees.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store