(Bloomberg) -- Chinese electric-vehicle manufacturers led declines in Asia’s largest economy as a pricing battle between major automakers intensifies.

Automaker Great Wall Motor Co. Ltd and dealership China Meidong Auto Holdings led a slide in the MSCI China Index, while carmakers BYD Co., Li Auto Inc. and Xpeng Inc. were among the worst performers, each dropping at least 5%, as the gauge erased gains for the year.

The slump was triggered by a report that BMW AG and Audi dealers were marking down prices by as much as 100,000 yuan ($14,350) for EV models, and that more than 30 brands have participated in the price war by offering deep discounts after Tesla Inc. cut prices earlier this year. 

EV makers have become latest industry that investors have become wary of using heavy subsidies and price competition to boost sales, with an increasing number of automakers rolling out promotional events and markdowns.

The battle for consumers hasn’t been restricted to electric-car makers. Government subsidies in central China along with discounts from state-backed Dongfeng Motor Group Co. have slashed prices of some gasoline-fueled cars such as the Citroen C6 by more than 40%.  

Some EV suppliers, however, don’t see the recent rebates as signaling a price war. Chinese battery maker Contemporary Amperex Technology said recent deductions are aimed at sharing lithium mineral resources with long-term strategic clients and not deliver price cuts, it said in a statement Friday.

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