Up to 11 Million Won Off: Unprecedented Discounts
Price Cuts as a Breakthrough Amid Slowing Growth
As competition in the electric vehicle market among global automakers expands to Japan, major companies such as BYD of China and Hyundai Motor have launched large-scale discount sales.
According to the Nihon Keizai Shimbun (Nikkei) on September 2, BYD, a Chinese electric vehicle manufacturer, reduced the prices of its models sold in Japan by 501,170 yen (approximately 4,711,103 won) on August 29.
After the discount, the selling price of the compact electric vehicle Dolphin is 2,492,000 yen (about 2,349,000 won), making it the lowest-priced compact electric vehicle in Japan. If local government subsidies are applied, the actual purchase price drops even further. In addition, various models such as the sedan Seal and the SUV Sealion, which was released this year, are also being offered at limited-time discounts until the end of this month.
Nikkei analyzed that BYD adopted a price reduction strategy in Japan to seek a breakthrough, as its growth has slowed in its main market, China.
BYD has led price competition and driven the growth of the Chinese automotive market, but its profitability has deteriorated due to excessive competition, and even domestic demand is weakening.
In contrast, Japan still has a low electric vehicle penetration rate, which is seen as having significant growth potential in the future. In fact, BYD's electric vehicle sales in Japan from January to July this year reached 1,936 units, a 50% increase compared to the same period last year.
Hyundai Motor also announced on its website on August 29 that it would temporarily lower prices until December. The maximum reduction is 1,580,000 yen (about 14,900,000 won), and the selling price of its flagship electric vehicle, the Ioniq 5, has been lowered to 3,910,000 yen (about 3,687,000 won).
Previously, Tesla, an American electric vehicle manufacturer, also implemented a limited-time price reduction in May, intensifying the competition over electric vehicle prices in Japan.
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