Yes, Chinese automotive discounting is rising, especially for new electric and petrol powered cars
Imagine this. You buy a brand new Chinese made electric car in January 2024. Then in May 2024 (just 6 months later) the same car is being advertised on Facebook for a hefty RM18k discount.
By Christmas 2024, the same model is now being offered with a RM33k discount (year end special offer).
Then when you thought it can’t be any worse, in May 2025 the discount has reached RM42k.
This means, your 17-month old electric car which was at new just below RM190k is now probably worth RM90k at best in the used car market. What will its value be in 3-4 years’ time?
This is the dilemma facing many new electric car buyers around the globe and also Malaysia and let us emphasize that this is not just with Chinese auto manufacturers. The same situation with German and Korean auto manufacturers.
The push for electric vehicle market share and high sales volumes has given car buyers great discounts TODAY ……. But it has also PUSHED the used car market down. Yes, when you want to buy that shiny new discounted electric car, the used value of your old petrol powered car is very low.
So, DID YOU REALLY GET ANY SAVINGS?
Will this trend INCREASE CAR REPOSSESSION?
Chinese and also all other auto manufacturers have been discounting their cars even before a year from its official launch.
Auto manufacturers are engaging in a price war, slashing prices on both new and existing models to gain or keep market share. This is impacting both local assembled and also imported vehicles.
Additionally, and somewhat shocking, Chinese auto brands are no longer focused just on battery-electric vehicles (BEVs).
As interest in BEVs declines, these ‘not-so-long-ago’ electric car manufacturers are turning to hybrid and battery assisted internal-combustion engine powertrains.
Now, the PHEV and Hybrid powertrains appeal to a wider buyer group concerned with affordability. The Malaysian automotive market will transform in the near future as it adapts to these new trends, conditions and increased competition.
