- IM Motors: Significant Discounts on the Electric SUV LS6
- Leapmotor: Unprecedented Discounts on C16 and C11
- Market Background: Escalating Price War
- Impact on Consumers and Market
- Will the Discount Wave Continue?
The Chinese electric vehicle market is witnessing rapid developments amid intensifying competition among manufacturers. IM Motors, a subsidiary of the giant SAIC Group, and the emerging company Leapmotor have announced significant discounts on some of their models, responding directly to the wave initiated recently by BYD through widespread discounts on its economical models. This move reflects the dynamic nature of the Chinese market, where competitive pricing has become a crucial factor in attracting consumers and boosting sales.
IM Motors: Significant Discounts on the Electric SUV LS6
IM Motors announced a limited-time discount on its electric SUV LS6, reducing the base price to 194,900 yuan (approximately 99,350 AED / 27,180 USD), a reduction of 45,000 yuan (about 22,950 AED / 6,280 USD) from the original price of 239,900 yuan (approximately 122,350 AED / 33,460 USD). Additionally, the company added a government subsidy for vehicle replacement programs worth 15,000 yuan (about 7,650 AED / 2,090 USD), bringing the final price to 179,900 yuan (approximately 91,650 AED / 25,090 USD) for eligible customers.
IM Motors also offers attractive financing options, including zero down payment and zero interest for the first two years of a five-year financing plan, making the vehicle more accessible to a wider range of customers.
It is worth noting that the LS6 is a mid-to-large-size SUV, measuring 4,910 mm in length, 1,988 mm in width, and 1,669 mm in height, with a 2,950 mm wheelbase. The model was first launched in October 2023 with four trims priced between 229,900 and 291,900 yuan, followed by an updated version in September 2024 with five trims priced from 239,900 to 302,900 yuan. The company had previously offered temporary discounts to encourage sales but now returns with a more attractive offer amid fierce competition.
Leapmotor: Unprecedented Discounts on C16 and C11
Leapmotor announced significant discounts on the EREV (Extended-Range Electric Vehicle) versions of its C16 and C11 models for customers purchasing before June 8. The base price of the C16 was reduced from 155,800 yuan (approximately 79,458 AED / 21,280 USD) to 111,800 yuan (approximately 57,018 AED / 15,595 USD), a 28.24% discount. The base price of the C11 EREV dropped from 148,800 yuan (approximately 75,888 AED / 20,400 USD) to 103,800 yuan (approximately 52,938 AED / 14,478 USD), a 30.24% discount.
These discounts reflect Leapmotor’s desire to increase its market share and face growing competition from major companies like BYD, especially as consumers trend toward affordable electric cars with modern technologies.
Market Background: Escalating Price War
These moves come after BYD, the largest player in China’s electric vehicle market, announced wide-ranging discounts on its "Dynasty" and "Ocean" models, prompting several companies to review their marketing strategies. BYD officials announced the start of a new wave of discounts on social media, expected to accelerate competition and pressure profit margins in the sector.
Impact on Consumers and Market
These discounts are expected to significantly increase demand for electric vehicles, especially among consumers seeking advanced and cost-effective mobility solutions. Financing offers such as zero down payment or zero interest will attract young buyers and families looking for flexible financial options.
Market analyses indicate that these discounts may push other companies like NIO and Xpeng to take similar steps to maintain competitiveness, potentially prolonging the "price war" in the coming months.
Will the Discount Wave Continue?
Observers believe the continuation of discounts depends on market response and companies’ ability to balance increasing sales with maintaining profit margins. With rising inventory levels in some companies and slowing sales growth in certain segments, discounts may become a necessary tool to achieve annual targets.
The recent discounts from IM Motors and Leapmotor reflect the dynamic nature of China’s electric vehicle market and underscore the importance of pricing flexibility amid fierce competition. As companies continue to offer attractive deals, Chinese consumers remain the biggest beneficiaries, while the market awaits further developments in prices and financing options for smart vehicles in the near future.
