China Autos & Shared Mobility: Year-End Push Drives October Discounts

Approaching year-end, BYD's average model price decline accelerated to 1.0% MoM in October, the steepest this year. Geely's incumbent models also saw a more pronounced price decline of 0.6% MoM, while discounts widened to 15% below MSRP. NIO's and Li Auto's pricing remained stable in October. The launches of the Li Auto i6 and XPeng MONA L05 are likely to dilute blended prices next month. BYD's model prices declined by an average of 1.0% MoM, while the launch of Great Han partially offset the decline. Discounts widened from 8.2% to 8.9% below MSRP. Most Li Auto models remained flat MoM, while MEGA's price increased 2% as the previous version exited the market. Average discounts narrowed to ~3%, or Rmb10k. XPeng's retail prices declined by an average of 0.4% MoM. Discounts widened to 4.8% below MSRP, equivalent to Rmb10k. NIO's retail price remained flat MoM again, despite the absence of new model launches. Discounts remained stable at an average of 2.6% below MSRP, equivalent to Rmb8.4