Ford’s success in the US electric vehicle (EV) market does not extend to China, where breaking through has been challenging. The American carmaker sold a paltry 7,782 units of its Mustang Mach-E model in China last year, compared to almost 40,000 units in its home country.
To remain competitive in China’s rapidly expanding EV market, Ford has resorted to offering deep discounts on its electric SUV. According to a recent Reuters report, the car manufacturer is providing discounts of up to $5,700 (40,000 yuan) on the Mach-E until the end of April.
A representative from Ford has revealed that the prices of the Mach-E will start at just over $30,000 (209,900 yuan) following the promotion. Ford is the latest automaker to join the growing list of car manufacturers offering price cuts on their popular EV models in China to stimulate demand.
See also: China Extends Electric Vehicle Subsidy Until 2023 To Boost Car Sales
Tesla set the ball rolling by slashing prices on the Model 3 and Model Y at the beginning of this year. Following this, Citi Analyst Jeff Chung predicted that it would have a “negative spillover effect” on the backlogs of other automakers in China.
XPeng, a Chinese EV manufacturer, dropped prices on its EVs by up to $5,300, which led to several auto manufacturers following suit. Last month, Toyota cut prices on its bZ4X electric SUV by 15%, with a new starting price of less than $25,000 (169,800 RMB). Ford’s price reduction in China comes after it had already lowered Mach-E prices in the US by up to $5,900.
Despite the successes of Ford in its home market, the challenges of China’s EV market and its impact on automakers globally remain. As EV adoption accelerates, the competition to offer affordable EVs with better features and design will only intensify. Therefore, it is crucial for automakers to adapt their pricing strategies to remain competitive in this rapidly growing and dynamic market.
