Does Xpeng’s 33% cut on its new 6-seat SUV portend a price war in the premium segment?
The slashed price on the GX model ‘surprised the market’ in a segment carmakers have high hopes for amid slumping EV sales
The market for six-seat premium SUVs in China is expected to become a more intense battleground, squeezing carmakers by forcing them to cut prices or enhance key features in a fight for market share, according to analysts.
The cut “surprised the market”, Citigroup analysts said in a report on Wednesday, adding that the new model’s monthly sales would grow to 8,000 to 9,000 units, taking market share from Li Auto’s L8, Lynk & Co’s model 900, and the Aito M8.
Amid a general sales decline owing to reduced subsidies this year, electric SUVs have shown resilience. The segment’s first-quarter retail sales dipped 1.2 per cent from a year earlier to 1.13 million units, while total EV sales slumped 21 per cent to 2.4 million units, data from the China Passenger Car Association (CPCA) showed.
Six-seat SUVs, in particular, were expected to be a key growth driver for the industry, said Tim Hsiao, head of the Greater China auto and shared mobility research team at Morgan Stanley, in an earlier interview.