STORY: An auto market price war appears to be escalating in China.

Nio said Monday (June 12) that it would cut prices for all its cars.

The Chinese brand is cutting over $4,000 off the price of every model, meaning discounts of up to 9%.

More than 40 brands operating in China have now made similar moves, following the lead set by Tesla.

That includes local rival BYD and German giant Volkswagen.

They’re all fighting for market share as car demand slumps.

Nio’s move comes after signs that its sales were flagging.

Over the first five months of the year it shipped just under 44,000 EVs.

Tesla's China sales totaled more than five times that number.

As part of Monday’s move, Nio also ended free battery swaps for its customers.

That offer has often been questioned by investors for its drag on earnings.

Over the first quarter, the company’s net loss more than doubled versus a year earlier.

Nio says it will now step up its investment in battery swapping stations, with a view to adding 1,000 new sites in China this year.

Tesla has long derided the whole idea of swapping, saying it’s riddled with problems and not suited for widescale use.

Nio shares rose over 4% in Hong Kong trade following Monday’s news, but are down almost a fifth this year.