The Avalanche of EV Price Cuts Continues With New Participants
Tesla aims to be the world leader in the electric car market. That’s pretty much a given, but the competition in China is incredible compared to other markets. Most of us know about the recent Tesla EV price cuts with reduced prices for its entire lineup, but did you know several automakers have slashed EV prices in China?
Ford was the only responding automaker to the Tesla EV price cuts
When Tesla announced reduced prices to consumers for all four EV models, Ford was the only brand to follow suit in the United States. Ford exercised EV price cuts on the Mustang Mach-E, keeping it competitive with some Tesla models. Why didn’t other automakers also slash electric car prices?
The American EV market isn’t at the same level as China, yet
We might think EVs are taking over in the United States, but we’re far from that. Most automakers still pump out gas-powered vehicles as fast as they can make them while exercising an electric vehicle ramp-up plan.
The ramp-up toward electrification in China is far ahead of the United States. Several Chinese-based electric vehicle brands have a stronghold on the Chinese automaker. Automakers must sell increasing percentages of electric vehicles in this auto market. While the United States is only beginning the EV movement, China has been ramping up for years.
What are the recent EV price cuts in China?
We’ve established the Chinese auto market to be much more competitive for EVs than America. With that in mind, more automakers are cutting EV prices in response to Tesla’s announced price reduction.
Teslarati tells us the brands that cut EV prices in China, other than Tesla, are:
- Ford – $5,849 average price cut
- Nissan – $8773 average price cut
- Toyota – $4,386 average price cut
- Xpeng – $5,264 average price cut
- BYD – $1,299 average price cut
Most recently, Volkswagen and BMW joined the mix, cutting EV prices of their Chinese offerings by:
- BMW – $14,643 average price cut
- VW – $5,849 average price cut
BMW offers a different version of the i3 than what we see in the United States, and Volkswagen brings the ID.4, ID.6, and ID.3 to China.
Although Tesla started this price war with other EV automakers, they are far from the price leader in China. The same can be said in the United States, but when one company drops prices, the expectation is that prices should drop for similar vehicles from all brands.
Have other automakers exercised EV price cuts in Europe?
So far, the European market reports slightly smaller discounts on Tesla vehicles than what we see in the United States and what’s offered in China. This small price reduction hasn’t been met with an aggressive response from other EV brands yet.
What does this mean for future EV pricing in the United States?
As our market changes to offer more electric vehicles, we might witness a massive price war between automakers. Many companies are only getting started, and over the next few years, we expect to see extensive EV lineups from the four GM brands and Stellantis with Ram, Chrysler, and Dodge. Other names like Toyota, Honda, Subaru, and Nissan are just a few brands that are also building their EV lineup for the North American market.
The next few years will certainly be interesting as we see the growth of electric vehicles and more competition for Tesla in America.
Next, check out five hidden features of the new Tesla Cybertruck, or learn more about the upcoming electric vehicles from various brands in this video below: