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The interior of Mercedes’ EQS electric sedan © Getty Images for Mercedes-Benz

Mercedes-Benz Group has slashed prices of some electric car models in China, joining a list of automakers that have followed suit Tesla’s price drop last month, in the latest sign of slowing demand in the world’s biggest market for electric vehicles.

The starting prices of the EQE model, EQS model and its luxury edition – the AMG EQS 53 model – sold in China will be reduced by Rmb50,000 ($7,000), Rmb204,600 and Rmb198,600, respectively, a said the German automaker. .

“We aim to flexibly adjust operating strategies in response to changing market demands,” the company said in a statement.

Mercedes-Benz faces intensifying competition from local rivals in the process of electric and digital transformation, Daimler China Director Hubertus Troska said at the China International Import Expo earlier this month, reported official media.

In October, Tesla cut prices for its Model 3 and Model Y sedans in China. Within days of Tesla’s move, Ford Motor’s EV arm and Aito, a Huawei-backed EV brand, followed suit.

Analysts have warned of a price war in the country’s increasingly crowded electric vehicle sector.

“This lower price strategy would generate overall negative sentiment,” Citigroup analyst Jeff Chung wrote in a research note, citing slowing growth in electric vehicle sales due to economic headwinds and zero checks. -Covid in China.

Chung added that Tesla’s move would also put pressure on other premium electric car makers, including XPeng, Volkswagen and BYD.

According to data from the China Association of Automobile Manufacturers.

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