Neta is the latest to slash prices as the price wars intensify in China
As the price wars in China intensify, Neta Auto had yesterday cut the prices of its main models, with X and AYA series by up to CNY22,000 (USD3,055) to as low as CNY99,800 and CNY65,800 (USD13,865 and USD9,141), respectively, the electric vehicle (EV) brand under the Chinese automaker Hozon Auto said.
This comes amid the fierce competition in the Chinese car market so now we ask, will Neta also slash prices of the models it sells here in Malaysia as well? Not likely. Given the only Neta model on sale here is the Neta V and it is priced at RM100,000, which is the minimum the government allows, this won’t be able to happen.
Moreover, The Neta X saw the highest price cuts, as all four variants previously on sale have been reduced in price by RMB 22,000 (USD3,060), with the latest starting prices at RMB 104,800, RMB 114,800, RMB 114,800, and going up to RMB 124,800, respectively, according to a post by Neta on its WeChat.
To quickly touch on the point made earlier, for those unaware, the Malaysian Government has a rule in which foreign EVs which are to be brought into the country have to be sold at RM100,000 or above in order to “ensure that local EVs are more competitive.” Just ignore the fact that there are no local EVs and this makes sense.
So now that that’s out of the way, and also taking into account that global EV powerhouse, BYD, had also recently slashed prices of some models in China, we are more likely to see BYD cut prices of its EVs here in Malaysia instead of Neta. Probably not for the recently launched BYD Seal though but maybe the Dolphin.
On top of that, the EV price wars in China have been very unforgiving and have put so many Chinese EV makers in a tough spot financially and even put some newer and smaller EV brand out off business all together and Neta being the latest victim is very concerning as now it seems all car brands are going to have to cut prices.
Either way, while the price wars may not be a good thing for automakers like Neta, it is a very good thing for customers, well on the surface, at least. At the end of the day carmakers are in business and the purpose of business is to make a profit, so if the brands are forced to cut prices, they will eventually cut corners too.
