A few months ago, Elon Musk warned about the impact that Chinese car manufacturers are having on the global automotive industry. “They work harder and smarter,” said the owner of Tesla, without citing any specific brand, who sees his position as the leader in sales of zero-emission cars worldwide threatened.
The rise of BYD, one of the main Chinese competitors in the electric vehicle market, has been particularly notable in 2023. The company chaired by Wang Chuanfu was the global sales leader in the last quarter of 2023, which represents a serious threat to the reign of Tesla, which despite this ended the year with 1.81 million units delivered compared to BYD's 1.57 million.
Chinese car manufacturers base their commercial strategy on very competitive prices thanks to the availability of cheap labor and the excellent quality-price ratio of their cars. Faced with this competition, one of the ways that Western producers have to stay in the market is by lowering the prices of their cars, a strategy that they are currently adapting.
Tesla has already announced that it will begin producing a 'low-cost' electric car in mid-2025. Musk's challenge is to manufacture a car for the mass market. His idea is that it is much more affordable than the brand's current bestsellers, the Model 3 and Model Y, and that it has a starting price of approximately $25,000 (about 22,950 euros).
But before the new car, whose project is known as 'Redwood', is a palpable reality, Musk has already rushed to lower the price of his most emblematic models.
The entry-level version of the Model 3 has dropped below the 40,000 euro barrier. This is the rear-wheel drive variant, which can travel up to 491 kilometers on a charge, which costs 39,990, not counting the aid from the Moves III plan, which in the best of cases can reach 7,000 euros. Thus, some consumers could purchase a copy for 32,990 euros.
Regarding the Model Y, Tesla has also lowered the price of the best-selling electric car in the world. The entry variant to the range costs 42,900 euros after Elon Musk's company has established a reduction of 3,500 euros. This amount is reduced to 35,760 euros if the maximum aid provided by the Moves III plan to those who purchase an electric car is deducted.
The German firm has also been forced to make a move in the face of the growing arrival of Chinese brand models in the Western market. Volkswagen has announced the price drop for three of its most popular electric vehicles: the ID.3, the ID.4 and the ID.5.
The ID.3, a compact passenger car that is also improved compared to the 2020 model, is now offered starting at 34,640 euros. This amount represents a reduction of 6,830 euros on the previous price and can be further reduced with the help of the Moves III plan with up to an additional 7,000 euros.
The other two models to which Volkswagen has placed the discount sign are the ID.4 medium SUVs, the brand's first electric car of these characteristics, and ID.5. The first of them has suffered a price cut of 8,085 euros while the discount on the ID.5 reaches 7,045 euros, with which the access models now cost 43,460 euros and 46,720 euros, respectively, without taking into account the government support.
Before Volkswagen announced the price reduction of some of its most popular electric models, Mercedes-Benz already did the same with the EQE. The low sales figures in Spain in 2023 for this model - below 800 units - in a year in which the star brand grew by 17.8% in our country led the company's managers to establish a new price for this 4.95 meter long electric sedan.
Specifically, the discount already applied to the sales price of the EQE 300 and EQE 350 versions is 4,840 euros; In this way, the price of access to both ranges is 72,791 euros and 73,744 euros, respectively. As in previous cases, these amounts may be reduced by up to 7,000 euros if the maximum conditions of the Moves III plan are met.
The price cut in electric cars at the beginning of 2024 does not only affect European and North American companies. MG, the brand of British origin that currently belongs to the Asian group SAIC (Shanghai Automobile Industry Corporation), has just announced a discount of 2,000 euros on its entire range of electric vehicles to celebrate the centenary of its creation. That is, the MG4, MG5, the MG Marvel and the best-selling MG ZS EV.
In this way, the MG4 Electric is offered from a starting price of 16,480 euros, although yes, you have to look at the fine print. To reach a price like this, well below other similar gasoline models, for example, MG applies the entire package of possible discounts, including financing and the maximum aid of 7,000 euros from the Moves III plan.
The base prices of the other MG electric models are also very interesting adding all the possible subsidies. Thus, for example, the MG5 Electric is offered from 23,280 euros and the Marvel R Electric for 30,980 euros, meeting all the conditions.
The Spanish brand that emphasizes sports cars is also not far behind when it comes to lowering the price of one of its most in-demand electric models, the Born. Without reaching the discounts offered by Volkswagen for the ID.3, ID.4 and ID.5, Cupra lowers the price of its compact between 3,000 and 4,000 euros depending on the version. Thus, the entry version to the range, the Cupra Born 150 kW 58 kWh, is available from 34,990 euros.
The founding brand of the Renault Group has also lowered the price of one of its most iconic models, the Mégane E-Tech, to compete with Chinese electric cars. Since December 2023, the diamond firm applies a discount of 4,700 euros on the SUV, so the version with 60 kWh and 220 HP is available starting at 38,880 euros without taking into account the additional subsidy of the Moves III plan.
