Huawei-backed premium EV brand Aito cuts prices, following Tesla’s discounts, heating up competition in world’s largest car market
- Aito has cut prices on three of its M5 and M7 premium electric vehicle models by as much as US$4,444
- The heavy price adjustments made by Aito after Tesla’s discounts reflect the drop in demand for premium battery-powered vehicles in China
Aito, which was jointly launched in December 2021 by Huawei and EV maker Seres, cut prices by as much as 30,000 yuan (US$4,444) on three of its M5 and M7 models, which now cost from 289,800 yuan to 309,800 yuan, according to an announcement on Friday. The entry-level M5 model was marked down by 28,800 yuan to 259,800 yuan.
The basic M5 model’s 259,800-yuan price tag costs 100 yuan less than what Tesla’s Model Y Long Range electric sport utility vehicle currently sells for.
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Tesla owners in China protest against price cuts as consumers tighten budgets
The heavy price adjustments made by Aito after Tesla’s discounts reflect the drop in demand for premium battery-powered vehicles in China, as lay-offs in the country’s technology industry, manufacturing disruptions and the pandemic-ravaged economy push budget-conscious consumers to opt for cheaper EV models.