(Yicai) Nov. 11 -- Volkswagen has decided to lower the prices of its ID.UNYX electric vehicles in China, as the German auto giant continues to struggle amid intense competition in the Chinese EV market.

The starting price will be reduced by CNY40,000 (USD5,556), with the models now ranging from CNY169,900 (USD23,600) to CNY210,000 (USD29,170). Volkswagen also said it would offer a cash rebate to those customers who bought the model previously.

Volkswagen released the ID.UNYX, an all-electric sports utility vehicle, in the Chinese market in July, initially pricing it at CNY209,900 to CNY249,900 (USD29,150 to USD34,710). It is the first EV from Volkswagen Anhui, the third joint venture set up by VW in China, and its first focused squarely on electric vehicles.

Chinese-foreign JV auto brands have seen their market share plummet this year, due mainly to the surge in popularity of China’s home-grown new energy vehicles. 

In September, domestic NEV makers swelled their sales by 25 percent from a year ago to 1.34 million units, while those of Chinese-foreign JVs sank 22 percent to just 530,000, according to numbers from the China Passenger Car Association.

Volkswagen recently announced that it sold about 2.1 million cars in China in the first nine months of this year, marking a 10 percent year-on-year decrease.

The situation has prompted automakers to cut prices further to fight for market share. A number of the JVs have announced cuts since the start of this month amid the latest discounting wave, with brands such as FAW Toyota Motor, SAIC General Motors, and Dongfeng Honda Automobile announcing limited-time offers. 

The price of the electric Mini Cooper, a brand owned by BMW, was also cut by CNY41,000 to CNY46,000, with the starting price adjusted to CNY148,800.

Editors: Tang Shihua, Tom Litting