The new year has started with a round of price cuts in the Chinese new energy vehicle industry, just like it happened at the beginning of last year.

Eight carmakers have announced they have lowered the prices of their electric vehicle models so far this year.

On Jan. 11, Chinese NEV startup Li Auto introduced its new models and said it would thus reduce the prices of last year’s models by between CNY24,000 and CNY32,000 (USD3,370 and USD4,500).

Tesla launched its first price cuts of the year on Jan. 12. The Chinese EV maker lowered the prices of the Model 3 and Model Y series by between CNY11,500 and CNY15,500 and between CNY6,500 and CNY7,500 (USD915 and USD1,050).

On the same day, Chinese automaker Chery Automobile announced it would cut the prices of its electric models by up to CNY8,000.

Chinese NEV startup Nio introduced a short-term purchase discount on last year’s models yesterday. Nio’s 2023 car models will be priced CNY24,000 to CNY32,000 lower. Deliveries of the new models will start in March.

Changan Automobile’s EV brand Avatr, NEV startup Leapmotor, Hozon Auto’s NEV brand Nezha, and Geely Holding Group’s EV marque Zeekr also lowered the prices of some of their models by between CNY15,000 and CNY37,000.

Chinese carmakers will resume the price war this year, industry insiders said, adding that it will likely last the whole year. NEVs will usher a new period of growth in the first quarter of this year, also thanks to the fierce competition in the industry, said Cui Dongshu, secretary-general of the China Passenger Car Association.