BEIJING, April 1 Reuters Chery CHERY.UL announced on Monday that it would offer purchase tax breaks, tradein subsidies and auto finance discounts on some of its bestselling combustion models, as a cutthroat price war rages in the world39;s largest auto market.

Among Chery39;s combustion models eligible for the new incentives effective Monday are the Tiggo 8 Pro champion edition, Tiggo 9 and Arrizo 8 highperformance edition, the automaker said in a statement on its WeChat account.

Orders of Tiggo 9, the champion edition of Tiggo 8 Pro and Tiggo 8 Plus would be entitled to limitedtime purchase tax giveaways, in addition to tradein subsides of up to 20,000 yuan 2,766.71 and auto finance discounts of up to 5,000 yuan.

In June, China unveiled a massive package of tax breaks over four years through 2027 for new energy vehicles capped at 30,000 yuan per vehicle. Combustion vehicles are not subject to such breaks.

Chery also announced cash discounts on Arrizo 8 highperformance edition and offroad SUV Discovery 06 of up to 15,000 yuan.

Rival BYD has slashed prices on a slew of new versions of its existing models since February, aiming to take on combustionengine vehicles with its lowerpriced electric ones.

1 7.2288 Chinese yuan

Reporting by Qiaoyi Li and Brenda Goh; Editing by Jacqueline Wong; Editing by Muralikumar Anantharaman

Source Reuters