China’s passenger vehicle market experienced a decline in insurance registrations last week, with a mixed performance from major new energy vehicle (NEV) makers. According to automotive industry consultancy ThinkerCar, insurance registrations for all passenger cars in China totaled 308,700 units in the week of March 6 to March 12, down 10.6 percent from the previous week and down 8.86 percent from the same period last month.
Insurance registrations for NEVs were 107,800 last week, down 7.29 percent from the previous week and up 8.67 percent from the same period last month. In contrast, insurance registrations for conventional internal combustion engine (ICE) vehicles were 211,000 last week, down 12.28 percent from the previous week and down 16.12 percent from the same period last month.
BYD’s NEVs, including pure electric models and plug-in hybrids, saw 37,141 insurance registrations last week, down 4.6 percent from the previous week. Tesla’s insurance registrations in China were 17,032 last week, up 28.4 percent from the previous week, with the Model Y registering 11,336 units and the Model 3 registering 5,696 units.
See also: Tesla’s Strong March Sales in China Fueled by Over 17,000 Insurance Registrations Last Week
Li Auto saw an increase of 31.7 percent in insurance registrations last week, with 4,243 units registered. The Li L9 and the Li L8 had 1,562 and 1,615 insurance registrations, respectively, while the recently launched Li L7 had 813 units and the discontinued Li ONE had 253 units.
The week also saw a rare price war in China’s auto industry, involving not only NEV makers but also traditional internal combustion engine automakers. BMW dealers were reportedly offering a massive subsidy for the all-electric BMW i3 in China, and consumers who pay full price for the car can even get the model for less than half the retail price. While BMW insiders denied this, sources at BMW dealers confirmed that discounts were being offered.
The increasing number of car companies joining the price war has led to increased consumer wait-and-see sentiment to avoid seeing price reductions shortly after purchasing a car. To address this issue, Li Auto has introduced a consumer purchase price protection benefit that covers all of the company’s currently available models. If the prices drop within 90 days of the order, Li Auto will refund the difference.
