EV makers including Leapmotor, Neta and Denza have all introduced 90-day price protection policies.
(Image credit: Neta)
As the auto price war in China continues, some electric vehicle (EV) makers are beginning to make it clear that they will not cut prices in an attempt to dispel the wait-and-see sentiment of potential consumers.
EV makers including Leapmotor, Neta and Denza have all introduced price protection policies, after Li Auto (NASDAQ: LI) introduced a similar policy and NIO (NYSE: NIO) made it clear that the company would not cut prices.
Leapmotor announced yesterday that for consumers who purchase any of its models during this month, they will get the difference back if the price drops within 90 days or if the company offers additional cash discounts.
This is in line with a policy introduced earlier this week by Li Auto, whose salespeople said it was designed to make clear to consumers that its models would not be reduced in price.
Neta, Hozon Auto's EV brand, announced today that consumers who order its flagship sedan, the Neta S, by April 30 will not have to worry about the model's price dropping within 90 days.
If the price of the model drops within 90 days of the consumer's purchase, Neta will refund the difference.
Notably, along with the announcement of the price protection policy, Neta began offering an RMB 23,000 ($3,340) discount for the lowest-priced model of the Neta S, bringing the model's starting price down to RMB 179,800 from the previous RMB 202,800, valid until the end of April 30.
Neta models on sale also include the Neta V and Neta U, which start at less than RMB 150,000 and are not covered by its price protection policy.
Denza, BYD's premium brand, announced that if consumers who purchase its vehicles during the month see a drop in official guide prices will receive a rebate for the difference.
Geely Auto and Volvo Car's jointly held Lynk & Co brand also began offering a 90-day price protection policy that expires on April 30.
The increasing number of car companies joining the price war has led to an increased wait-and-see mood among consumers to avoid seeing price cuts soon after purchasing a car.
An NIO executive said yesterday that they noticed Li Auto's move and the company had considered whether to issue a similar policy.
But for NIO, it has previously made it clear that prices will not be lowered, the company's assistant vice president of sales operations Pu Yang said at a media event yesterday, adding that NIO is not only not cutting prices for 90 days, but prices will not change for a longer period of time.
(1 $= RMB 6.8843)
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