After Tesla cut the price of the Model 3 and Model Y in China. A price cut was also taken by AITO, which issued a new lower price for the M5 and M7 electric cars.
AITO is the first Chinese car brand to follow Tesla’s lead and consumers will surely benefit from this move. AITO is cutting the price by RMB 8,000 (over $1,000) and it looks like other manufacturers are also making similar moves.
China is known as one of the largest electric vehicle markets in the world besides Europe and the US. With a large population and stable economic growth under pressure from inflation, China’s electric vehicle market has become a target for both local and international manufacturers.
AITO sells its cars through Huawei’s showroom network as well as through its website with a total of 27,400 models shipped in the third quarter. The M5 SUV is a competitor to the Tesla Model Y with prices starting from RMB 288,600.
China’s electric vehicle industry is known for its large sales figures and is growing faster than anywhere else in the world. But it does come with a consequence: Chinese electric carmakers’ profit margins are slim and they have little room to move.