As reported by Reuters, the European auto parts and parts index (SXAP) fell 4.06 percent highlighting challenges for foreign automakers struggling to break into China’s growing electric car market.
However, some analysts predict a price war in the coming months could ensue, with industry-wide sales projected to slow amid weaker consumption and tougher competition.
Not only Mercedes-Benz, Huawei-backed AITO cuts prices of M5 and M7 in China. Meanwhile, Tesla, cut prices by up to 9 percent.
Meanwhile, sales of the four electric vehicles affected by Mercedes-Benz’s price cuts accounted for 3 percent of total sales in China in the first eight months of 2022.
The price of the EQE model was cut by 9 percent, and the price of the EQS luxury limousine was reduced by 11 to 22 percent.
“The high-end electric vehicle segment in China is still developing. Mercedes-Benz is repositioning certain EQ models in China,” said a Mercedes-Benz spokesperson.
Mercedes-Benz itself will offer subsidies through dealers to consumers who buy the car before the price adjustment.