The Chery-Huawei joint venture offers cash incentives on its S7 and R7 models as competitive pressures intensify.
Luxeed, the electric vehicle brand co-developed by Chinese tech giant Huawei and state-owned automaker Chery, has cut prices on its S7 and R7 models by as much as RMB 20,000 (£2,000 / $2,800) until July 31st.
The brand is the latest participant in China’s ongoing automotive price war which has seen almost every car maker cut prices in one way or another to attract buyers, often for an initial month but usually extended.
While Luxeed has just celebrated the delivery of its 100,000th vehicle, things are not as rosy as that number might suggest, with sales down from 13,000 units in January to just 5,000 in May, leading the brand to trim prices.
Combined with existing promotions and local government subsidies, the company claims customers could access benefits worth up to RMB 60,000 (£6,100 / $8,400), though specific terms remain unclear.
The aggressive pricing strategy follows similar moves by industry leader BYD, which slashed prices on 22 models in May with some reductions exceeding 30%.
Market observers view Luxeed’s decision as a strategic play to boost sales volumes amid softening demand and intense competition, with the brand’s R7 SUV recording 5,124 deliveries in May, according to Huawei’s Harmony Intelligent Mobility Alliance (HIMA) sales data, and figures withheld from for the S7 saloon.
Both models currently retail between RMB 229,800 (£23,300 / $32,100) and RMB 319,800 (£32,500 / $44,600), positioning them in the competitive premium segment of China’s EV market against the likes of Zeekr, NIO, and Xiaomi.
Being aligned with Huawei gives Luxeed access to one of the leading ADAS systems on the market, as well as synergies in terms of infotainment, audio systems, and car components, but even this has not been enough to coax customers to the brand.
The renewed discounting comes despite recent calls for restraint from the China Association of Automobile Manufacturers (CAAM), which warned in May that prolonged price wars could destabilise the industry.
While the trade body’s intervention temporarily cooled the market, Luxeed’s latest move suggests manufacturers remain willing to sacrifice margins for market share.
For many brands, slowing growth in China has led to marketing their vehicles abroad, but there has been no such move from Luxeed just yet, with sister brand AITO the only one of the HIMA quartet actively promoting vehicles abroad.
They’ll be hoping for a positive improvement in June’s sales figures but the implementation of the discounts suggest that’s not likely the case.
