The Electric Vehicle Price War Is Set to Intensify This Year

KatadataOTO – Manufacturers from China are increasingly aggressive in offering their electrification lineup to the global market. One of their hallmarks is that the vehicle prices offered tend to be cheaper compared to other models in the same segment.

In Indonesia, this has already started to happen. BYD introduced its first electric MPV, the M6, with the most affordable price tag, ranging from Rp 379 million to Rp 429 million.

Previously, the title of the cheapest EV (Electric Vehicle) was held by the Seres E1 at Rp 189 million. But towards the end of the year, Wuling announced the arrival of the Air ev Lite Long Range variant, causing its lowest type, the Lite Standard Range, to drop to Rp 179.1 million.

This price war is predicted to continue among many electric car manufacturers, and even intensify in 2025.

Photo : Xpeng

“The (EV) market is certain to face fiercer competition in 2025. And I can say with certainty that the price war will begin in January,” said He Xiaopeng, CEO of Xpeng Motors, as quoted from CnEVPost on Saturday (4/1).

This strong competition is most felt in China's domestic market. There, more than 100 electric car manufacturers compete to present product lines that meet the needs and demands of local consumers.

The negative impact is that many small manufacturers have lost out in the competition and have been forced to stop selling electric cars.

Meanwhile, for manufacturers in the global market, they face additional challenges such as supportive government policies in other countries, like subsidies or incentives, which help make their electric car prices more competitive.

Competition Among Premium Chinese Electric Cars in Indonesia

Even in the premium segment, the competition is just as tight. At GJAW 2024, Zeekr offered the premium MPV 009 with an estimated price of Rp 2.3 billion - Rp 2.7 billion.

Photo : Denza HK

However, this year, a number of other manufacturers will bring in premium electric-powered MPVs. For example, the BYD Denza D9 is reportedly being sold for Rp 900 million to Rp 1 billion.

Then, towards the end of 2024, the premium brand Xpeng also announced its arrival in 2025. One of the models being brought in is the MPV X9.

The price range is not yet clear, but for a rough idea, the Xpeng X9 is sold in Hong Kong starting from 659,000 HKD - 699,900 HKD, or around Rp 1.3 billion to Rp 1.4 billion in Rupiah.