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Volkswagen China has drastically reduced the price of its electric hatchback, the ID.3. For a limited period, buyers can avail of a “historically low” ¥125,900 ($17,434) starting price. This means the ID.3 now costs roughly half as much in China as it does in Europe.
https://insideevs.com/news/675842/volkswagen-slashes-id3-pricing-china/
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They are just being competitive. Chinese workers are paid very little. That is why their cars cost about £15K.
Lol
VW being competitive for a short period ?
Underscores the desperation at VW whilst sales of BMW Evs rocket
VW are in dire straits and have only themselves to blame
All 9f the Chinese manufacturers have reduced prices as China is going into a recession. It’s not just VW, but all of the big Chinese manufacturers, hence the push into Europe to get more sales with a higher price/profit margin
Its a shame for consumers
VW main woes imo and that of many others are not chinese related as VW want us to believe its simply down to poor/deaf managment/cheap design/huge tech flaws and again just like their diesel scam they are trying to take customers for fools in a desperate attempt to repay its huge $192 billion debts
At least their 1st at something..first among the world’s most indebted companies.
Looks like Audi has confidence in the chinese and want to partner with them ( foolish imo
The whole chinese economy is and has for a long time been a wobbly stack of cards that will fall, when? who knows but when it does it will rock the world )
All 9f the Chinese manufacturers have reduced prices as China is going into a recession. It’s not just VW, but all of the big Chinese manufacturers, hence the push into Europe to get more sales with a higher price/profit margin
With due respect Roger, you really need to read reliable news outlets rather than listening to some whacky youtube video’s!
China is the worlds largest car manufacturer the country became the second largest car exporter after overtaking Germany and has since overtaken Japan to become the world largest car exporter. China’s car market continues to grow in 2023 both in the domestic and export market, with no let up of it slowing.
China has wanted to break into the European market for years, just has it had done with other markets. To say China only wants to enter the European to get in to Europe because of recession is far from the truth!
“SHANGHAI, April 19 (Reuters) – Elon Musk has said the only thing holding back electric vehicle (EV) sales is their price.
Musk’s Tesla (TSLA.O) cut prices for the sixth time since the start of the year on Tuesday, looking to drive demand in the face of economic uncertainty and growing competition. Tesla’s price cuts have prompted other automakers, including in China, to follow suit.
Companies like BYD (002594.SZ) are solving that problem in China – and getting ready to solve it for the world.
China’s largest EV maker unveiled this week the Seagull at the Shanghai auto show, shocking analysts and rivals with the car’s specs: a battery range of more than 300 kilometers (186 miles) and a starting price of just over $11,000 – about a quarter of the price of most EVs now on the market in Europe.”
You need to ask yourself who was the first company to start a price war, which China followed. Picking a price war with China, was perhaps a fools game!
July 10th Reuters – Intense competitive pressure: Since January, when Tesla cut prices in China, about two dozen automakers have followed with price cuts of their own to stay competitive and stoke demand.
The list of automakers includes Chinese brands like Xpeng (9868.HK), Geely (0175.HK) and its affiliate brands like Volvo(VOLCARb.ST), state-owned Chery Automobile (CHERY.UL), NIO (9866.HK) and Great Wall Motor (601633.SS).
Global automakers followed. Ford (F.N) cut prices on its Mustang Mach E EV. Toyota (7203.T) offered a discount on its bZ4X EV, and Nissan (7201.T) offered an incentive on its Ariya EV. General Motors (GM.N), Honda (7267.T), Stellantis (STLAM.MI), Ford and Nissan (7201.T) also marked down combustion vehicles, which are losing share to EVs and plug-in hybrids.
Those changes have created intensifying competition over price and features that is driving sales for EVs but also threatening industry-wide profitability, analysts say.
China Association of Auto Manufacturers CAAM in March had urged automakers and local authorities to cool “price-cut hype” to ensure what it called the stable development of the industry.
Consumers had been waiting for bigger discounts before buying, analysts said, while some auto suppliers have been forced to accept payment cuts.
On Thursday, at an event in Shanghai, CAAM brokered a series of commitments signed by executives from 16 automakers. The signatories included industry-leaders in battery vehicles Tesla and BYD (002594.SZ), EV-focused Chinese brands NIO, Li Auto (2015.HK) and Xpeng, as well as Geely. State-owned brands Chery Automobile, SAIC Motor (600104.SS), GAC Group, Dongfeng Motor (600006.SS) and FAW Group (SASACJ.UL) also signed.
The signing was witnessed by an official from China’s Ministry of Industry and Information Technology.
The letter included a pledge to “not disturb fair competition in the market with abnormal pricing” to stabilise the market and promote consumption. That was widely seen as a truce in the price war.
It appeared in doubt just a day later when Tesla said it was offering a referral payout equal to about $500 on its Model 3 and Model Y vehicles, including in China. Volkswagen’s (VOWG_p.DE) joint ventures with SAIC and FAW also announced price cuts in China on their ID-series EVs on Friday.
On Saturday, CAAM retracted the pricing pledge.
While steady price cuts by companies should be allowed, subsidies should be removed as they distort the pricing system, Cui Dongshu, secretary general of the China Passenger Car Association, said on Monday.
Meanwhile le VW continues to strugle with its electric vehicles, in its home and European markets.
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