File Photo: The logo of the company of China’s Automaker byd is seen on a car outside its headquarters in Southern city of China.
Bobby Yip | Roots
share in Bide On Tuesday, the initial trade fell to 2.96%, the damage recorded in the pre -session continued.
The fall of more than 9% on Monday was the reverse of its record high last week, as investors assessed the price cut in the Chinese electric vehicle’s giant company on 23 May.
The company announced on the Chinese social media platform Weibo that it was lowering prices on 22 electric and plug-in hybrid models by the end of June.
For example, the price tag of the seal hatchback was reduced from 20% to 55,800 Chinese yuan ($ 7,780), while the seal double-motor hybrid sedan was cut from 34% to 102,800 yuan.
The latest developments follow other price modifications, which were declared by the automekar in the first year, such as the release of its Han Sedan and Tang SUV at an early price which was 10.35% and 14.3% lower than previous versions.
City analysts hopes that the reduction in the price of byd has a 30% to 40% spike in the footfall at its dealership stores between May 24 and 25 compared to the previous weekend.
The shares of other Chinese vehicle manufacturers also declined on Monday as investors alerted the stifer competition and a possible price war in the region.
In Gealy Automobiles, shares were last seen doing 7.29% less trading, while Great wall motor cum And Lee auto 2.94% and 4.93% were lost respectively. Meanwhile, share in Xpeng 4.19%were below.
Looking further, the city analysts have no concern that the cut in the price of byd will destroy the market share of its rivals.
Analysts wrote in the May 26 note that 200,000 Chinese yuan expects “strong sales growth” for new energy vehicle companies with prices below the yuan.
