China Auto Price War Sees $13,000 Cash Back Incentives on Offer
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A price war started by Elon Musk’s Tesla Inc. has spread beyond electric cars to gasoline-fueled vehicles as the likes of Peugeot SA’s Citroen, Mercedes-Benz Group AG and General Motors Co.’s Chevrolet seek to protect market share.
Government subsidies in Hubei province in central China, together with discounts from state-backed Dongfeng Motor Group Co., have slashed the prices of some cars such as the Citroen C6 by more than 40%, with sweeteners as steep as 90,000 yuan ($12,900) on offer. The promotion will run until the end of the month, according to posters from dealerships.