(Yicai) Dec. 19 -- Chinese new energy vehicle startup Xpeng Motors followed its peers, including BYD and Li Auto, in joining the year-end price war in China’s automobile industry.

Xpeng yesterday announced it would cut the price of its G6, a model that has been on the market for less than six months, by CNY10,000 (USD1,400). The Guangzhou-based firm had already lowered the prices of the G9 and the P7i by CNY19,000 and CNY26,000, respectively, earlier this month.

In the first 11 months of the year, Xpeng delivered 122,000 cars, way below its sales target of 200,000 units.

Nearly 20 carmakers have launched promotional policies this month. They include Chinese brands BYD, Li Auto, Leapmotor, IM Motors, Changan Automobile, Hozon Auto, Zeekr, Geely Auto, and Trumpchi, as well as joint ventures FAW Toyota Motor, GAC Toyota Motor, and SAIC General Motors.

Year-end price promotions are more substantial among some carmakers, as they strive to meet sales targets, said Cui Dongshu, secretary general of the China Passenger Car Association. Trying to increase sales volume at the cost of profit aims to keep links across industry chains running efficiently, he noted.

But Zhang Yong, chief executive of NEV startup Hozon Auto, believes that data growth is valueless if it comes at the cost of profit or negative gross profit margin.

Competition will continue to intensify in the Chinese auto market next year, Fitch Ratings said in a research note. Chinese carmakers may be under pressures of market shares and profitability in the short run amid fierce competition, the US rating agency added, noting that JVs will continue to face challenges, with some of them reporting low profits, even if they manage to recover some market share with aggressive electrification transition strategies.

Editor: Futura Costaglione