It is the beginning of price wars in the Chinese EV market. After Tesla (NASDAQ: TSLA) slashed its car prices in China earlier this month, Chinese EV maker XPeng (XPEV) has followed suit.
According to a Reuters report, XPeng announced the price cuts on its official WeChat account and slashed the starting price by 12.5% of its best-selling pure electric P7 sedan to $31,015 or 209,900 yuan.
According to the report, XPEV also lowered prices for all versions of P5 sedan and G3i sports-utility vehicles in the range of 10% to 13%. Moreover, the EV maker is also offering customers who purchased its EVs before the price cuts were announced extended maintenance services for free.
With these price cuts, EV makers are trying to bolster demand for cars in China. Another Chinese auto maker, Seres has also announced price cuts for its vehicles.
Analysts are sidelined about XPEV stock with a Hold consensus rating based on six Buys, four Holds and three Sells.
