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Geely Geometry said in an official Weibo post on April 1 that due to the reduction in the cost of new energy vehicles, feedback activities will be launched with a maximum subsidy of 13000 yuan, which is limited from April 1 to April 30.

According to the official publicity posters, we can see that the three models participating in the event are Geometry E, Geometry G6 and Geometry M6. Specifically, Geely Geometry E series has five different models, with a maximum subsidy of 10000 yuan; Geometry G6 series has four different models, with a maximum subsidy of 13000 yuan; and Geometry M6 series has four different models, with a maximum subsidy of 13000 yuan.

According to relevant data, Geometry is a high-end pure electric brand of Geely Automobile Group, which was launched in Singapore in April 2019, while Geometry A, the first pure electric car of Geometry, is also officially on the market, with a price of 12.68-207800 yuan. According to the official website of Geometry, its models currently on sale include Geometry A, Geometry C, Geometry E, Geometry M6 and Geometry G6. Among them, Geometry G6/M6 went on sale in November 2022. The price range of the former is 14.98-186800 yuan, while that of the latter is 14.98-186800 yuan.

As for the reasons for the price reduction of geometric cars, officials said that "the cost of new energy vehicles has been reduced." Lithium iron phosphate battery, as an important raw material for new energy vehicles, its increase will naturally have a certain impact on the price of new energy vehicles, but the price of battery-grade lithium carbonate has been declining since the Spring Festival. The price of battery-grade lithium carbonate was 250000 yuan / ton. For comparison, the price of battery-grade lithium carbonate reached as high as 590000 yuan per ton in 2022, more than double its current price.

Volvo officially announced on March 30 that from April 1 to April 30, 2023, its S90, XC90, S60, XC60 and XC40 (fuel version) models will have subsidies for car purchases, totaling up to 200 million yuan.

On March 27th, Chery New Energy announced that thanks to the global price correction of new energy raw materials and the improvement of enterprise cost control and supply chain management, Chery New Energy will formally adjust the official guidance price of its models from 0: 00 on March 27,2023. The range of correction is as high as 9000 yuan. In terms of breakdown, the models involved in the price adjustment include Chery QQ ice cream, Chery Little Ant and Chery Unbounded Pro, of which three QQ ice cream models are reduced by 4000 yuan to 35900-45900 yuan; four small ants models are reduced by 4000-9000 yuan to 64999-94000 yuan; and five unbounded Pro models are reduced by 5000 yuan to 84900-110900 yuan.

Indeed, the price reduction measures taken by car companies can play a certain role in promoting sales within a short period of time, but they cannot become the norm. After all, many consumers expect that as the price war heats up, car companies are still waiting for more price cuts. On the contrary, it will make some consumers have a wait-and-see mentality. Although the current decline in lithium mine prices brings some profit space to car companies, most new energy car companies are at a loss stage. Price reduction makes new energy car companies under greater pressure, and the break-even is a long way off. Tail car companies will also face elimination. At this stage, for new energy car companies, through technological upgrading to reduce costs is the most effective way, after all, cost reduction can make enterprises have more room to reduce prices, increase sales and market share, and is more conducive to the long-term and healthy development of enterprises.

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