(Yicai) Feb. 26 -- GAC Honda, a joint venture between China’s GAC Group and Japan’s Honda Motor, is cutting CNY100,000 (USD14,618) off the price of a limited number of Accord e:PHEV models, marking the first wave of post-Lunar New Year price reductions in China’s auto market.

The discount is to celebrate the 50th anniversary of the Accord and is aimed at returning customers, the Guangzhou-based firm said. After the discount, which is the biggest price cut for this model since its launch, the Accord e:PHEV will be reduced to CNY138,800 (USD 20,288) from an official guide price of CNY 238,800. However, GAC Honda stressed that the offer is limited to just 1,000 vehicles.

Times have changed. Back in the heyday of gasoline-powered cars, buyers often had to pay extra just to get their hands on an Accord. But the latest data tells a different story. In January, the brand’s monthly sales plunged 27 percent from the previous month to a mere 13,800 units.

Over the past three years, GAC Honda’s 4S dealerships have been rolling out a number of sales promotions. At one point, the actual transaction price of the Accord was more than CNY50,000 (USD7,300) below the official guidance price.

From the market perspective, there remains intense competition among vehicles priced between CNY100,000 to CNY150,000, which is the mainstream segment of the car market. The automotive consumption index came in at just 31.1 last month, a historic low, according to data from the China Automobile Dealers Association.

To stimulate demand, more than 10 carmakers, including Tesla, Nio, XPeng and Li Auto, have recently launched seven-year ultra-low-interest financing deals.

Prices for conventional fuel vehicles continued to edge up in January, while prices for new energy vehicles showed a “declining quantity, rising price” trend, said Cui Dongshu, secretary-general of the China Passenger Car Association.

Editor: Kim Taylor