"The market is no longer booming!" The global electric vehicle industry has entered a "winter mode", with discounted sales to increase sales volume.
In the UK, the average discount for electric cars in October was 11% lower than the suggested retail price. In Germany, where car manufacturers rarely offered discounts last year, some companies are now offering up to 20% off for their best-selling models. In the United States, the sales of discounted electric cars have doubled in the past 12 months.
The price war is not only happening in China, but the global electric vehicle industry has also entered a "winter mode", with major automakers in Western countries significantly reducing prices in an attempt to increase sales through discounts.
Sales and loan data compiled by HSBC show that automakers are offering significant discounts on electric vehicles for the first time in the European and American markets.
In the UK, the average discount for electric vehicles in October was 11% lower than the suggested retail price, according to AutoTrader data. Two-thirds of new car sales offer discounted car loan rates, with some offering even more discounts.
In the US, the discount price is equivalent to a 10% reduction from the retail price, and over the past 12 months, sales of discounted electric vehicles have doubled.
In Germany, where almost no car companies offered discounts last year, automakers have been offering discounts of around 93% off the suggested retail price in recent months in order to attract buyers. Some companies are even offering up to 20% off for popular models.
Some media commentators have noted that this is the first time in three years since the global takeoff of electric vehicle sales that demand has slowed down, raising concerns that cars may be forced to offer discounts in order to meet emission reduction targets at the expense of profitability. A senior executive in the automotive industry commented, "The entire market suddenly no longer seems to be booming."
HSBC analyst Mike Tyndall said there are clear signs that automakers are aggressively promoting electric vehicles, which was almost unimaginable at the beginning of this year.
There have been some warning signs in the automotive industry recently.
An article on Wall Street CN last month mentioned that more and more automakers, including Tesla, General Motors, and Ford, are becoming cautious about the demand for electric vehicles. They are concerned that high interest rates will increase financing costs, and the slowdown in major global economies may also impact car demand.
General Motors announced last month that it will slow down its electric vehicle strategy, focusing on profitability and delaying the launch of several models to reduce costs.
At the end of last month, LG Energy Solutions, a major supplier of power batteries for companies such as Tesla and General Motors, warned in its earnings report that due to the deteriorating macroeconomic environment and high interest rates hindering consumer spending, coupled with the slowdown in European economic growth, the company's revenue growth next year is expected to slow down and will not be as high as the estimated 30% this year.
Volkswagen announced earlier this month that it will delay the construction of its fourth electric vehicle battery factory in Europe due to "lower-than-expected" demand for electric vehicles in the European market. The company has not yet decided on the location of the factory.
Volkswagen's CFO, Arno Antlitz, stated that in Europe, Volkswagen's largest market for electric vehicle sales, orders for electric cars this year have decreased by 50% compared to previous years, from 300,000 units last year to 150,000 units. In Volkswagen's second-largest market, China, the company faces risks and may lose market share in China before launching new vehicles in cooperation with Xiaopeng Motors.