Chinese EV makers are starting 2024 with yet another round of bitter price war.  The competition among automakers in China that started in early 2023 has shown no signs of abating. Particularly in the new-energy vehicle sector, both traditional and emerging players keep cutting prices or launching limited-time promotions, tactics that analysts anticipate will persist throughout the year. Auto giant BYD fired the first shot in this round of the price war after the Spring Festival holidays, introducing new versions of two models that are 20,000 yuan cheaper than the previous versions. US-based Tesla followed suit by launching limited-time discounts of up to 34,600 yuan for buyers. BYD, the crown jewel among Chinese carmakers, cut the price of its cheapest car, the Seagull, by 5%. That follows the launch of BYD's Yuan Plus crossover—known as the Atto 3 in overseas markets—with a starting price of 119,800 yuan, 12% lower than its predecessor. The Shenzhen-based company has priced another model under the 100,000 yuan threshold on Wednesday. The updated fully electric e2 model will start at 89,800 yuan, 12.6% less than the previous price of 102,800 yuan. Price cuts over the past three weeks pushed the basic editions of the four models – the e2, Qin Plus DM-i plug-in hybrid, Dolphin and Chaser 05 – below 100,000 yuan. The Warren Buffett-backed BYD isn't the only company resorting to discounts.XPeng Motors, one of the smart EV startups, announced that all models of its G6 series will be discounted by 20,000 yuan until March 31, with prices starting at 189,900 yuan after the discount. Huawei-backed AITO then launched limited-time promotions for its M5 series. Nine carmakers, including Geely, SAIC Volkswagen, Rising Auto and Chery, have announced price reductions or limited-time promotions. Tesla, which triggered last year's fierce price wars in China, has also rolled out incentives for March. The US carmaker is offering customers an insurance subsidy if they buy the company's existing inventory of Model 3 and Model Y cars. The recent price war in the passenger vehicle market is fundamentally driven by the replacement of old technologies with new ones, and the transition from traditional fuel vehicles to NEVs,  said Cui Dongshu, secretary-general of the China Passenger Car Association(CPCA). "As a new market order emerges, intense competition between old and new manufacturers ensues, and this process is expected to persist for several years until a new industry landscape takes shape," Cui said. In the rapid growth expected in the coming years, 2024 is expected to be a pivotal year for NEV producers to establish a solid footing in the market, Cui said. China's NEV industry started early and has developed rapidly. With more than 100 manufacturers in the market, the competition is fierce. Top players are leveraging price wars to squeeze out smaller firms with limited innovation and funding, according to Zhang Xiang, director of the Digital Automotive International Cooperation Research Center of the World Digital Economy Forum. The price war will persist throughout the year, Zhang said, noting that 2024 will be very significant for the players as governments at all levels roll out policies to promote vehicle consumption. Tough choice amid weaker sales China’s vehicle sales fell sharply in February.Retail sales of passenger cars in China declined to 1.1 million units, down 21% from a year earlier and 46% from January, according to the CPCA.  The association attributed the sharp decline to lower demand ahead of the Lunar New Year and some consumers bringing forward purchases to the start of the year. Consumers are also holding back after the latest round of price cuts as competition stiffens in China’s market, the CPCA said. Retail sales of new-energy cars, which include electric vehicles and plug-in hybrids, fell 12% to 388,000 units. Exports of NEVs edged 0.1% higher to 79,000 units but fell 20%