Tesla moved forward with substantial price cuts at the end of 2022 and the beginning of 2023. While those price reductions have continued and are boosting sales, some say it's simply not enough for Tesla to compete against its rivals in China. Meanwhile, those successful competitors are also reportedly dropping prices significantly.
Despite Tesla waiting until the end of the year and the opening of 2023 to drop its prices in the US and some other global markets, the US automaker had already been offering incentives and price cuts in China. In fact, it came as no surprise when it seemed the US EV maker was pushing to boost sales in China while even raising prices in other markets.
This is because China is the world's biggest automotive market, a hot spot for EVs, and arguably the only market where Tesla has any real competition, at least for now. Many automakers in the US and other markets are finally selling compelling EVs, but not in numbers like Tesla and its rivals in China. Still, the US electric car producer may need to push even harder to stay near the top.
With all of that said, according to Teslarati, The Wall Street Journal reports that manufacturers and dealerships in China are facing a sales slump. Ford, GM, Volkswagen, and others are now running EV promotions and cutting prices. Meanwhile, Tesla's top competitor in the country, BYD, is having notable sales success.
The publication writes that Ford has knocked $6,000 of its Mustang Mach-E, which puts the base model at around $31,000. This came after just 84 of the electric crossovers were sold in China in January 2023, as compared to around 1,500 in December 2022.
Volkswagen has shaved off $2,200 to $7,300 per vehicle in China (gas and electric), which its ID electric cars discounted by nearly $6,000. GM has also been offering price cuts in China, but it appears they apply to its gas-powered vehicles after such cars have seen a sizable drop in sales.
China's EV incentives, which first went into place way back in 2010, have pushed it to the top when it comes to global EV and PHEV sales. Meanwhile, gas-powered car sales in the country have dropped by 30%.
