Tesla's rivals have entered into a price war with the company in China, in a battle for customers. Competitor sales in the largest market in the world continue to plummet, especially after the decline in prices for Tesla cars.
Ford Motor Co., BMW Group and Volkswagen AG have entered into a price war started by Tesla, according to The Wall Street Journal. They began offering big discounts and promotions on their electric vehicles after China phased out nationwide subsidies for the purchase of electric vehicles. At the same time, General Motors Co. and Citroën have begun cutting prices even on their gasoline-powered cars.
Overall car retail sales in China fell by almost a fifth in January and February from a year ago, with many consumers avoiding large purchases. Tesla has been one of the few that continue to record domestic sales growth. In early January, the manufacturer significantly reduced the price of its cars in China, which attracted a lot of attention from consumers.
According to data collected, Ford has cut the cost of its Mustang Mach-E by about $6,000 through the end of April. Only 84 vehicles were sold in China last month, down from about 1,500 in December. The automaker only saw a spike in sales in December after cutting its original price by about 9%.
In addition, according to industry data, manufacturers and dealers want to sell off about 500,000 older combustion engine vehicles. They are rushing to do so as the cars will soon no longer meet stricter emissions standards.
Volkswagen's joint venture with the Shanghai government said Thursday it is cutting prices on 20 petrol and electric models through the end of April, with discounts ranging from $2,200 to $7,300 per vehicle. The German automaker had previously slashed the price of its electric ID series by nearly $6,000. A Volkswagen spokesman said the company is offering temporary promotions due to general reluctance from car buyers, new emissions regulations, and discounts offered by competitors.
Tesla's price cuts have spurred other automakers not only to cut prices on their vehicles but to intensify their search for ways to improve manufacturing processes to make them cheaper. Tesla is truly the motor of progress in the automotive industry around the world.
© 2023, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.