According to the popular Chinese media, a definitely major topic of discussion amongst the whole New Energy Vehicle manufacturers is something that Tesla unexpectedly did. The company reportedly decreased the prices of its Tesla Model 3 making it harder for other EV companies to keep up.
According to Inside EVs It was already shown in certain reports that the huge demand for the known MIC Model 3 is quite blooming and it is definitely great on one hand of the spectrum but as always, if certain competitors are unable to adjust to the brand new situation, the results will most likely be affected.
(1/6) After recent $TSLA Model 3 price cuts in #China the competitive pricing range landscape including $XPEV, $BYDDY, $NIO looks like this: pic.twitter.com/beMrKImN3Y — Marcel Münch 马赛 (@_mm85) October 6, 2020
How will the Chinese EV makers react to the situation
It was stated that the whole price reduction is probably not really a good situation for Chinese EV maker companies like NIO, Xpeng, BYD, and also others that see and acknowledge that the Model 3 prices definitely start at quite a comparable level as to other EVs. Especially if this range of pricing is actually profitable for Tesla themselves and quite challenging for others.
It definitely seems like Elon Musk's plans to prioritize manufacturing for the company's own pays off, as in the really long-term. Tesla will still be able to undercut other competitors. At this current point, it is also difficult to actually evaluate the effect of these LFP batteries that the new Model 3 SR+ version uses, as the whole Long Range version even gets a much deeper price cut of about 10% as compared to the regular 8%.
#XPeng declares it will not cut prices as Tesla's recent cuts put pressure on #China OEM to follow, local media reports.
XPeng said if it cuts prices, earlier buyers to be compensated.
Currently, Xpeng offers leasing service allowing buyers to lease car & battery separately. pic.twitter.com/BSlzWHjTFl — Moneyball (@DKurac) October 6, 2020
The drop in price comes with huge pressure
The currently largest price pressure seems to fall on the known Xpeng P7 that was only just introduced a couple of months ago back in June. Time will definitely reveal just how NIO will cope up to its competitor but at least under this current policy, the ability for certain battery swap still allows NIO to get its own subsidies even despite the price they sell above the normal limit.
BYD is also among those listed on the chart and has quite a lot of orders for their all-new model, the BYD Han, and is quite busy as of the moment introducing its known BYD Blade Battery or the LFP CTP in its additional models, so this should make them able to cut their prices a little lower.
It is definitely a reality that the industry is experiencing where times can be really challenging and it will actually be even more difficult to actually compete with additional models when they hit the market. This includes the upcoming high-volume MIC popular Tesla Model Y later on in 2021 and also the Volkswagen ID.4 which is already produced in two different plants in China.
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This article is owned by Tech Times
Written by Urian Buenconsejo
