Chinese electric vehicle maker Xpeng (NYSE:XPEV) has announced plans to launch a lower-cost brand of electric vehicles that will hit the market next month at prices between 100,000 and 150,000 yuan ($14,000 to $21,000), the company said on its official WeChat account.
Competition in China’s EV market has intensified as companies race to cut prices, with market leader BYD (SZ:002594) leading the way.

Tesla (NASDAQ:TSLA), on the other hand, said on Saturday that it will raise the price of its Model Y electric vehicles (EVs) by around €2,000 ($2,177) in several European countries on March 22, or the equivalent in local currency.
Previously, the company raised the price of some Model Y vehicles by $1,000 on March 1 and announced on Friday that it will raise the price of all Model Y vehicles in the United States by $1,000 on April 1.
In January, the company warned of ” notably lower” sales growth this year as it focuses on production of its next-generation EV, code-named “Redwood”.

These two developments highlight the strategic importance of competition and pricing in the EV market, with manufacturers adopting different approaches to increase market share and meet customer needs.