China’s electric vehicle price war is still raging, with no end in sight. Recently, He Xiaopeng, Chairman of Xiaopeng Motors, predicted that this “rather bloody” competition will continue at least until 2026 or 2027. He foresees that over the next two years, the decline in gasoline car prices will be more intense and rapid than this year, as there is still room for further price reductions.
On August 29, the “First Financial” reported that He Xiaopeng, Chairman and CEO of Xiaopeng Motors, made the above prediction during an interview with the media.
Recently, the first product of the Xiaopeng MONA product series, the MONA M03, was launched with a starting price of 119,800 yuan, lower than the previous forecast of 130,000 yuan. This car has become the lowest-priced product in Xiaopeng’s current vehicle lineup.
Moreover, when discussing the impact of artificial intelligence (AI) development on the automotive industry, He Xiaopeng stated that with the advent of the AI big model era, in the next 10 years, only 7 mainstream Chinese automotive brands will remain, and achieving an annual sales volume of 1 million vehicles will be the ticket to the finals for AI-powered cars.
The overseas market is also considered a crucial component for Xiaopeng Motors to secure a spot in the finals of intelligent cars in the next 10 years. He Xiaopeng mentioned that half of Xiaopeng Motors’ future sales will come from overseas markets. Regarding recent rumors about Xiaopeng Motors building a factory in Europe, He Xiaopeng clarified, stating, “We are not building a factory overseas, but are exploring partnerships abroad.”
The competition in China’s new energy vehicle market is fierce, with the price war extending from last year into this year. Many car manufacturers are using low-price strategies to grab market share, leading to a severe industry competition and elimination of numerous players, including WM Motor, Skywell, and Aiways.
The past six months of price wars have plunged the domestic Chinese market into an unprecedented frenzy. According to statistics from the China Association of Automobile Manufacturers, around 56 electric vehicles experienced price reductions from January to May 2024 alone, while a total of 70 models had price cuts throughout 2023.
Despite facing high tariffs in Europe and the United States, Chinese electric vehicle manufacturers remain undeterred and are determined to expand internationally.