Written by Cláudio Afonso | LinkedIn | X
New energy vehicle (NEV) makers, including BYD, Nio, and XPeng, have started 2025 with aggressive discounts and subsidies in China, marking the start of a new round of price war in the world’s largest EV market.
XPeng’s founder and CEO He Xiaopeng said earlier this week, in a New Year internal letter, that competition in 2025 would escalate, with a price war likely beginning in the first month of the year.
Over the last few days, more than ten automakers have announced incentives for the month, targeting buyers during a transitional period for government subsidies.
 XPeng reported an 82% year-on-year increase in December deliveries, reaching 36,695 vehicles. After a slower-than-anticipated 2024, the company closed the year with weekly sales averaging more than 10,000 units.
For January purchases, the Guangzhou-based EV maker is offering a 10,000 yuan ($1,370) cash discount and electricity credits.
Nio said earlier this week it delivered 31,138 electric vehicles in December, a new monthly record for the Shanghai-based carmaker and in-line with the guidance previously provided by the management. Deliveries included 20,610 units from the Nio brand and 10,528 from its second brand, Onvo.
On January 1, Nio announced a subsidy guarantee program for customers who miss out on government incentives due to early invoicing. The program offers compensation in the form of Nio points and charging credits for purchases invoiced between January 1 and the end of February.
The Beijing-based NEV maker Li Auto is providing 15,000 yuan ($2,050) per vehicle for orders placed and delivered in January if local government subsidies are not introduced or applicable by the end of the first quarter, on March 31. If subsidies are implemented before delivery, the offer will be terminated.
BYD announced discounts of over 11% on select models until January 26, while Tesla reduced the price of its Model Y inventory by 10,000 yuan ($1,370) and introduced a five-year, interest-free financing plan. The company is expected to unveil the facelift of the Model Y, the world’s best selling model, this quarter.
As reported earlier this Friday, Tesla China’s sales increased by 18.9% in December, rising from 78,856 vehicles in November to 93,766 vehicles, according to the Passenger Car Association (CPCA).
The Chinese media outlet IThome reported on Friday that also FAW Toyota and Chevrolet, introduced temporary cash discounts, financing offers, and exchange incentives.
S&P Global said recently it expects momentum in China’s new energy vehicle (NEV) market to continue in 2025 supported by trade-in schemes, car purchase incentives and government stimulus.
As reported earlier this week, the new energy vehicle brand backed by the tech giant Huawei and the Seres Group, Aito, was the most recommended NEV brand in China in the second half of 2024.
According to a new study from the Chinese Net Promoter Score (NPS), Aito led the ranking with 82.0 points and it was followed by Nio and Li Auto with 80.1 and 76.3 points, respectively. Tesla ranked fourth at 75.6, followed closely by Xiaomi, which delivered its first vehicles in late March, at 75.5.
China Net Promoter Score (C-NPS) is the first customer recommendation rating system in the country, introduced by China’s brand evaluation authority.
Written by Cláudio Afonso | LinkedIn | X
