Despite attempts from automakers to stabilize EV prices in China, the price war continues, with General Motors being the latest company to announce cuts.
The US automaker has slashed the starting price for the Cadillac Lyriq electric SUV in China by up to 14 percent. The luxury model based on GM's Ultium EV architecture now starts at approximately $52,500 (379,700 yuan) from $60,800 (439,700 yuan) previously, according to GM's China website (via Reuters).
In addition to the price cut, GM also is offering a discount of around $2,500 for Lyriq buyers who put down a deposit in China before the end of August.
The China-spec Lyriq is being built at SAIC-GM's plant in Shanghai. Marketed as the "Ruige," which translates into "sharp song" in Mandarin, the Cadillac Lyriq is available in rear- and all-wheel-drive configurations with up to 404 miles (650 kilometers) of range on the CLTC cycle for the RWD version.
General Motors sees the Lyriq as an opportunity for Cadillac in China, chief financial officer Paul Jacobson said last month, but sales of the luxury brand were down almost 8 percent in China last year, according to industry data.
Gallery: 2024 Cadillac Lyriq
The Cadillac Lyriq has seen a slow rollout since its launch last year. GM sold 918 units in the first quarter of this year, according to data from the China Association of Automobile Manufacturers (CAAM).
In the US, GM sold 2,326 Lyriqs in the first half of the year. The Lyriq starts from just under $59,000 in its home market.
Cadillac's price reduction comes shortly after Volkswagen cut prices on its EVs in China, where global automakers are under pressure and facing intense price competition as the market share of Chinese EV brands is rising.
VW announced discounts of between 8 percent and almost 27 percent on its ID family of electric vehicles built by its joint venture with state-owned automaker FAW. Volkswagen's other joint-venture with state-owned carmaker SAIC offered a limited time discount on the ID.3 hatchback of around $5,100.
Since Tesla cut prices in China in January, about two dozen automakers have followed with price cuts to stay competitive and spur demand.
