(Yicai Global) May 22 -- Arcfox, a Chinese new energy vehicle brand under BAIC Group, has introduced a rare all-cash compensation policy for buyers of earlier models after revealing a cheaper update.

Arcfox will fully compensate old car owners for the price difference after the brand launched its latest model Alpha S Advanced Edition, priced at CNY329,800 (USD46,915), this month, Zhang Guofu, executive director of the Beijing-based marque, announced recently. The earlier Alpha S Hi, unveiled in 2021, cost CNY429,900 then.

NEV makers have taken turns to cut their prices in China this year so some brands have started compensating earlier clients for the expected asset impairment but only Arcfox has announced that will be done in cash.

Arcfox is playing the marketing game, willing to pay a price to get more eyeballs, industry insiders said. People in car companies added that big marques could not do the same due to their large volumes.

Arcfox has not commented on how big the financial cost of the move is and it has not disclosed Alpha S Hi sales either. In 2022, the company sold almost 11,900 cars, whereas leading NEV startups sold similar numbers in just one month.

Editors: Shi Yi, Emmi Laine, Xiao Yi