Li Auto, a major Chinese automaker, has slashed prices by approximately 5% on four of its five models, intensifying a price war in the country’s automotive market. The company also announced refunds for customers who had purchased these models earlier this year, following similar moves by Tesla and BYD.
As the leading seller of extended-range hybrids in China, Li Auto’s decision to reduce prices follows a trend in the industry. U.S. automaker Tesla and BYD, the world’s largest electric vehicle (EV) maker, have recently lowered prices for their models, sparking increased competition.
Li Auto’s price cuts apply to its L7, Li L8, Li L9, and Li MEGA models, with discounts ranging from 18,000 to 30,000 yuan ($2,485-$4,142). Customers who purchased these models earlier this year will also receive cash refunds. The company had previously offered discounts on certain models in January.
In addition to the price adjustments, Li Auto recently launched the Li L6, a new extended-range electric vehicle. The vehicle reportedly sold over 10,000 units within 72 hours of its launch, indicating strong consumer interest.
The price war in China’s auto market began in earnest last year with initial cuts by Tesla and has since expanded to include numerous automakers. Geely Auto, GAC Aion, Leapmotor, and Xpeng are among the other automakers that have reduced prices this year in response to market competition.
