(Yicai Global) Feb. 27 -- Following a report that some BYD new energy vehicles are on sale at discounted prices, an insider at the Chinese electric car and battery giant told Yicai Global that it was a promotional activity by dealers in Beijing and Shanghai. The automaker has no intention of lowering its NEV prices, the person added.

BYD’s older NEV models are discounted between CNY15,000 and CNY20,000 (USD2,155 and USD2,870), and new NEV models are CNY6,000 to CNY8,000 (USD860 to USD1,150) cheaper in some Beijing and Shanghai showrooms, Shanghai Securities News reported today.

After Tesla cut the prices of its Model 3 and Model Y, BYD’s hot-selling Han and Tang series felt the pinch, Shanghai Securities News cited industry insiders as saying, so discounts were introduced to clear inventory, according to BYD sales staff.

Tesla’s price cuts in early January put a lot of pressure on Chinese electric carmakers. But compared with other peers, BYD has its own battery production lines, making it possible for the firm to digest the negative impact of lower price, the industry sources added.

Tesla sold 66,051 China-made vehicles in January, up 18 percent on the previous month, while BYD’s sales fell 36 percent to 150,000, according to data from the China Passenger Car Association.

But Chinese EV startups saw a bigger drop in sales last month. Some tried to trim prices to boost sales. For example, Nio launched a series of preferential policies for buyers of its ES6 and ES8 2022 edition models on Feb. 1.

Editor: Futura Costaglione