A new batch of price reductions within the new energy vehicle sector initiated by EV giant BYD strikes again with more than 10 NEV brands offering discounts, injecting new vitality into domestic consumption market, ThePaper reported on Monday.

On March 3, Chinese EV startup Xpeng announced a limited-time offer of price cut on all-series of its G6 model until the end of March - a 20,000 yuan ($2,779) discount with a starting price at 189,900 yuan.

The discounts started by BYD as the release of its brand new versions on models such as Qin, Han, Tang and Song with enhanced disposition and performance right after the Spring Festival holiday further enhanced its market competitiveness.

BYD's price cut made other NEV companies follow this lead to maintain their market competitiveness, especially for models between the 100,000 yuan to 200,000 yuan price range.

Companies such as SAIC-GM-Wuling, Geely, Neta, Chang'an's EV unit Deepal, Chery, Rising Auto, Volkswagen and Hyundai Motor followed this lead.

On March 1, Tesla also announced a packet of favorable policies on its Model 3 and Model Y including insurance subsidies and low interest rates.

A new round of policies boosting automobile consumption may also drive the growth of trade-in demands.

China has adopted a package of well-focused measures aimed at promoting a new round of large-scale equipment renewals and trade-ins of consumer goods as part of the country's efforts to push ahead high-quality development, according to the State Council, the country's Cabinet on March 1.

The Chongqing municipality has rolled out a financial subsidy on the purchasing of automobiles at a scale of 20 million yuan on the same day; eligible consumers can get financial subsidies at 2,000-3,000 yuan.

Multiple places such as Shanghai, Foshan of Guangdong province, Harbin of Heilongjiang province and Shaoxing of Zhejiang province also announced their new round of subsidy policies for auto consumption.

According to a research report from Minsheng Securities on March 3, stimulus policies in the past have effectively stimulated automobile consumption, and this round is expected to effectively drive the rapid growth of trade-ins of cars in the future.