Geely Auto knocked 4 per cent off its price catalogue as it began shipping its latest electric sport-utility vehicle (SUV) model to customers on Friday, throwing down yet another gauntlet against Tesla Model Y for the crown in China's electric vehicle (EV) market.

Zeekr Intelligent Technology, the premium EV label in Geely's portfolio, priced the 7X at 229,900 yuan (US$32,539) during the SUV's launch ceremony in Shanghai, knocking 4 per cent, or 9,100 yuan, off the presale price set on August 30.

"After consulting some customers, we decided to price the model at an even more attractive price", Zeekr's CEO An Conghui said. "The 7X is the best fully-electric SUV at the best price".

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The additional discount widened Zeekr's price advantage in the brutal discount war that is taking place in the world's biggest market for electric vehicles. The 7X, which was already 4 per cent cheaper than Model Y before the latest reduction, received bookings for more than 58,000 vehicles since the Hangzhou-based carmaker began taking orders three weeks ago.

A view of the Zeekr 7X midsize SUV. Photo: Zeekr Intelligent Technology alt=A view of the Zeekr 7X midsize SUV. Photo: Zeekr Intelligent Technology>

Zeekr offers the five-seat 7X in two options: a standard edition that can travel 605km (376 miles) on a single charge, or an extended version that can go up to 780km on a charge.

The short-range edition, powered by Zeekr's own lithium-ion-phosphate (LFP) battery, features 800-volt ultra-fast charging technology, which can offer nearly 400km of driving range after just 10.5 minutes of charging. The batteries boast the world's fastest charging capability, Zeekr said.

Model Y, the bestselling EV in China, pales by comparison, with its entry-level variant managing 554km on a single charge. The 7X is fitted with an autonomous driving system and built on the open-source Sustainable Experience Architecture (SEA) platform launched by Geely in late 2020.

"Zeekr has joined its domestic peers like Nio and Xpeng to take on Tesla with [smarter] models that are cheaper than Model 3 and Model Y", said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai. "The new cars have already prompted Tesla to upgrade its existing models to enhance its competitiveness in China".

Faced with the challengers, deliveries of the Model Y from Tesla's Shanghai Gigafactory fell 17 per cent in the first seven months of 2024 to 298,384 vehicles, down by 6 per cent in July alone, according to data compiled by the China Passenger Car Association (CPCA).

Rising competition has driven Tesla back to the drawing board. The carmaker plans to assemble a six-seat variant of the Model Y especially for the China market at its Shanghai factory next year, according to two people familiar with Tesla's operations in the country. At present, the company produces only the five-seat Model 3 and Model Y in Shanghai, which are seen as ageing models by young Chinese consumers.

Over the past three months, several Chinese auto brands have launched new models aimed squarely at Model Y, banking on surging EV penetration on the mainland.

Aside from the 7X, Nio's Onvo L60 SUV and IM Motors's LS6 are also piling the pressure on Tesla, the front-runner in China's premium EV segment.

All the existing models built by Zeekr are pure electric cars, but the company said last month that it would design and build its first hybrid models to vie for a bigger market share, which will be launched in the second half of 2025.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.

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