BMW and Volkswagen have reduced the prices of their EVs in China significantly. This comes after several carmakers (Mercedes and Tesla among them) have started offering their electric cars for less to increase sales and reduce inventory in the country.
The Volkwagen joint ventures FAW-Volkswagen and SAIC Volkswagen are lowering the prices of their ID. models in China by as much as 40 000 yuan ($5 800).
The cost of the ID.4 X, ID.6 X, and ID.3 was slashed by as much as 30 000 yuan ($4 350), but customers can allegedly receive other benefits worth up to 10 000 yuan ($1 450) at the dealerships, the Chinese media outlet CnEVPost reports.
The reason for the price cuts is relatively simple: sales are down. FAW-Volkswagen reportedly sold 9 572 units less in January-February compared to last year. That is a drop of 8,3%. In addition, according to both manufacturers, the offer is available for a limited time only, though the end date has yet to be communicated.
BMW is making prices spiral down even further. It is taking off 100 000 yuan (about $14 500) of the selling price of its i3. This is not the compact i3 that BMW stopped to produce last summer, but a fully electric version of the regular BMW 3-Series sold only in China.
The Bavarian carmaker reportedly struggled to sell its all-electric car in China. Before this official price cut, Chinese BMW dealers offered an i3 sedan for up to 30% below the list price.
VW and BMW are currently the latest manufacturers to react to the wave of price cuts initiated by Mercedes in November 2022 and Tesla in January of this year, when the Model Y prices dropped between 29 000 and 48 000 yuan, depending on the drive option. Among others, Xpeng had followed suit in China, as did Nissan (for the Ariya), Ford (for the Mustang Mach-E, and Toyota (for the bZ4X).
Tesla had started a price war on other continents, too, first in the US, and later it also lowered its prices for specific models in Europe. Ford reacted to the move by lowering the prices of its Mustang Mach-E and will soon be offering the car with two different battery packs, the less expensive version using cheaper LFP-type batteries. Mercedes has also lowered the price of some of its EQ models in the States, but until now, other brands didn’t follow suit there.
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