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Huawei-backed Aito cuts prices in China, following Tesla

Friday, January 13, 2023
Huawei-backed Aito cuts prices in China, following Tesla © Reuters. FILE PHOTO: A Huawei logo is seen at the Mobile World Congress (MWC) in Shanghai, China February 23, 2021. REUTERS/Aly Song/File Photo
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SHANGHAI/BEIJING (Reuters) -Chinese automaker Seres Group has cut starting prices for its Aito electric cars by 30,000 yuan ($4,460) from Friday, following price cuts by Tesla (NASDAQ:TSLA) last week and fuelling expectations of a wider price war.

The Aito M5 and M7 electric sports-utility vehicles, which were co-developed by the Chongqing automaker with China's tech giant Huawei Technologies Co, are priced from 259,800 yuan and 289,800 yuan after the price cuts, according to according to a notice on Seres' WeChat account.

For existing car owners who had picked up their cars before the price cuts, Seres is offering extended maintenance services for free as compensation, it added.

Tesla slashed prices of its Model 3 and Model Y cars by 6% to 13.5% a week ago,as competition intensified in the electric vehicles (EV) sector in China and demand is expected to falter in the first quarter.

That price cut, its second in three months, was quickly followed by protests by Tesla owners who had bought their cars late last year and wanted compensation or a rebate. Tesla has declined to compensate them.

Sales of Seres cars, which totalled 80,041 units in 2022, increased by more than six times from a year ago thanks to the newly launched M5 and M7 models. The cars are also displayed and sold in Huawei's showrooms.

($1 = 6.7278 Chinese yuan renminbi)

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    EUR/USD 1.0696 ↑ Buy  
    GBP/USD 1.1979 ↑ Buy  
    USD/JPY 131.93 ↑ Sell  
    AUD/USD 0.6906 Sell  
    USD/CAD 1.3454 Neutral  
    EUR/JPY 141.10 Neutral  
    EUR/CHF 0.9900 Buy  
    Gold 1,881.35 ↑ Sell  
    Silver 22.242 ↑ Sell  
    Copper 4.0158 Neutral  
    Crude Oil WTI 74.94 ↑ Sell  
    Brent Oil 81.66 Neutral  
    Natural Gas 2.489 ↑ Sell  
    US Coffee C 175.68 ↑ Sell  
    Euro Stoxx 50 4,194.95 ↑ Sell  
    S&P 500 4,111.08 ↑ Buy  
    DAX 15,281.35 ↑ Sell  
    FTSE 100 7,852.40 ↑ Sell  
    Hang Seng 21,298.70 ↑ Sell  
    Small Cap 2000 1,957.72 ↑ Sell  
    IBEX 35 9,164.08 ↑ Sell  
    BASF 52.795 ↑ Buy  
    Bayer 58.53 Neutral  
    Allianz 219.10 ↑ Buy  
    Adidas 154.13 ↑ Buy  
    Lufthansa 9.640 Sell  
    Siemens AG 141.60 Neutral  
    Deutsche Bank AG 11.453 ↑ Sell  
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