BEIJING, March 5 (TMTPost)-- The price war in Chinese auto market is deepening as more manufactureres joined in.

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Nine auto companies, including Tesla Inc., BYD Co. Ltd, Zhejiang Geely Holding Group Co., Ltd., SAIC Volkswagen Automotive Co., Ltd., Rising Auto, an electric vehicle (EV) brand under SAIC Motor, Chery Automobile Co. Ltd., IM Motors, an EV joint venture between SAIC Motor and Chinese technology companies Zhangjiang Hi-Tech and Alibaba Group, Hyundai Motor Company and Chang'an Automobile Co., Ltd., announced new promotional policies or price cuts last Friday.

Tesla customers placing orders for a Rear-Wheel Drive (RWD) version of Model 3 or Model Y that are in stock for delivery by the end of March can get an insurance subsidy of as much as RMB8,000 (US$1,030). The insurance subsidy, along discounts of RMB2,000 on some optional paint colors and the preferential financing plans, will lower the starting price of a vehicle by almost RMB35,000.

BYD, the leading new energy vehicle (NEV) maker in the world, rolled out the Song Pro DM-i Honor Edition starting at RMB109,800, RMB20,000 cheaper than starting price of the previous Glory Edition. The rollout extended BYD’s move two weeks. The company intensified the price war with two new versions of the Qin Plus Honor Edition starting at RMB798,000 . Compared with previous edition, the starting price of the latest Qin Plus Honor Edition is RMB20,000 cheaper.And the new edition not only shares all the features with the previous version but has two new features. In terms of starting price, the new edition first brought DM-i version costs less than RMB80,000 and the EV version first competes with vehicles at the price tag under RMB100,000.

Geely offered a cash discount of up to RMB47,000, a zero-interest auto loan amounting as much as RMB100,000 and a replacement subsidy up to RMB10,000 for any purchase in March. SAIC Volkswagen provided a limited time offer for certain versions of Tiguan 380TSI, costing as low as RMB265,000. Rising Auto lowered RMB25,000 to RMB30,000 for certain models. Chery said four of its brands including Chery, Exeed, Jetour and iCAR are qualified for the placement subsidy of up to RMB40,000. IM Motors offered a package including cash discount and free parts valued as much as RMB57,800 in March. Hyundai cut the starting price of SUV model ix35 by RMB20,000, down to RMB99,800. Chang'an launched the 125km-long-range version of Nevo Q05, starting at RMB96,900, compared with the former price of RMB131,900.

The new round of price campaign came as a number of electric vehicle makers posted slowdown or material drop in sales in February, an off-season when the seven-day Chinese Lunar New year falls on.

BYD sold 122,311 NEVs, including battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), in February. The sales recorded another double-digit month-over-month (MoM) decline after BYD ended an eight-month record-making streak in the beginning of this year. NEV sales crashed 39.3% and 36.8% 33.14% year-over-year (YoY) in February, compared with a 33.14% YoY growth and a MoM decline of 40.92% in previous month.

The wholesale sales of Tesla China fell 19% YoY to 60,365 units in February, the lowest since December 2022, according to preliminary estimates of the China Passenger Car Association (CPCA). The sales shed nearly 16% from January, when Tesla China posted an 8.2% YoY increase and 21.4% MoM decrease in wholesale sales.

AITO, a brand jointly developed by Huawei and Chongqing Sokon's brand Seres, maintained leadership among emerging EV startups in China for two months in a row. While delivery in the past month surged 504% YoY, it fell nearly 36% from January, the month saw a new monthly record of 32,973 vehicles with a 636.83% YoY increase and a MoMincrease of 34.76%. Li Auto fell behind AITO with a delivery of 20,251 vehicles in February. The delivery represents a 21.8% YoY increase but it dropped 35% MoM, while the company record a 105.8% YoY increase and a 38.1% MoM decrease in January.

Nio Inc.’s delivery in February decreased 33% YoY to 8,132 units, down 19% MoM. Xpeng Inc. shipped 4,545 EVs in Februay, with a 44.9% MoM decrease of and a 24% YoY decrease. Delivery of Zeekr, an EV brand owned by Geely, rose 38% YoY to 7,510 units in February, though dropped 40% from previous month. Zhejiang Leapmotor Technologies Ltd, delivered 6,566 EVs last month, more than doubling a year earlier, but the delivery sank 46.5% from January.