(Yicai) April 16 -- Smart Automobile, the electric vehicle joint venture between German auto giant Mercedes-Benz and Chinese carmaker Geely Holding Group, has introduced two new EV models that are cheaper than their previous generations.

Smart’s first and third EV models hit the Chinese market on April 14. The former is priced from CNY154,900 (USD21,400), down CNY24,100 (USD3,330) from the previous generation, while the latter is priced from CNY164,900, down CNY45,000 from the previous generation.

Introducing cheaper EV models aims to deal with the price war in the Chinese new energy vehicle market and better compete with similar cars, such as the all-electric China-made Mini, an industry insider told Yicai.

BMW Group announced last year that the German carmaker would launch next-generation all-electric Mini models, including a three-door Mini Cooper and a compact Mini crossover, this year. Spotlight Automotive, the JV between BMW and Chinese auto giant Great Wall Motor, would be responsible for the production of the Mini models both for domestic and overseas markets.

The Chinese new energy vehicle market ushered into a fierce price war last year, which further intensified this year. Smart’s Global Chief Executive Officer Tong Xiangbei told Yicai about a year ago that Smart would not join in.

Sales of Smart’s first and third models were fewer than 2,000 units last month. In 2023, the figure exceeded 67,000 units, of which 42,292 units were sold in China and 24,732 units abroad.

Editors: Liao Shumin, Futura Costaglione