Luxeed, the automotive brand jointly created by Huawei and Chery, has recently joined the ongoing price war in China’s automotive industry by offering significant purchase discounts to consumers. From June 27 to July 31, customers who purchase either of Luxeed’s two models can enjoy a cash discount of RMB 20,000 ($2,790), as announced by the brand on Weibo.
This new discount replaces the previous three-year interest-free financing plan and includes subsidies from local governments. When combined with other existing purchase benefits, consumers can accumulate benefits worth up to RMB 60,000, although specific details were not provided by Luxeed.
Luxeed, which is part of Huawei’s HIMA (Harmony Intelligent Mobility Alliance) business, introduced its first model, the Luxeed S7 pure electric sedan, on November 28, 2023, with a starting price range of RMB 229,800 to RMB 319,800. Following that, on September 24, 2024, Luxeed launched its second model, the Luxeed R7, the first coupe SUV under the HIMA business, with a starting price range of RMB 259,800 to RMB 319,800.
Just last month, Luxeed celebrated the delivery of its 100,000th vehicle, marking a significant milestone for the brand. In May, the Luxeed R7 recorded sales of 5,124 units, according to data released by HIMA, although specific sales figures for the Luxeed S7 were not disclosed.
The move by Luxeed to offer discounts amid the industry’s price war reflects a trend where securing higher sales volumes becomes a top priority for brands. This decision aligns with recent actions in the market, such as BYD’s announcement of price cuts for 22 models in May, prompting other domestic automakers to follow suit.
The China Association of Automobile Manufacturers (CAAM) also recently issued a statement urging an end to the price war to prevent the industry from entering a vicious cycle. Despite this, Luxeed’s entry into the price war signifies its commitment to boosting sales figures in a competitive market environment.
With these new discounts in place, Luxeed aims to attract more customers and drive sales growth, showcasing its determination to thrive in the ever-evolving automotive landscape.
