Tesla recently made a significant price cut in almost all markets, thus taking a lot of competitors on the wrong foot. However, the latter are trying to respond to Tesla, with price reductions and above all, gifts for customers who have not been able to take advantage of them. And it starts in China.
At Tesla, price fluctuation is an exercise that the American manufacturer has now been handling brilliantly for almost ten years. The best example dates from a few days ago in Europe, and more particularly in France, with the Tesla Model 3, the price of which fell by almost 15,000 euros overnight, in particular thanks to the reintegration of the ecological bonus into the equation.
But in view of a complicated economic situation, Tesla has more generally lowered its prices everywhere in the world, starting with China at the very beginning of the year, when sales were starting to run out of steam. To understand how prices are set at Tesla and why they fluctuate so much, do not hesitate to take a look at our dedicated file.
The fear of Tesla in China?
The other brands generate their pricing from year to year. These are called model years, and prices usually don’t move much in the current year. It is generally in August that these updates take place, except at Tesla therefore, who sets his prices as he sees fitsince its commercial constraints and its distribution network are less sprawling and less complicated compared to other manufacturers.
In response to Tesla, as reported by the Asian media IT Home, the Chinese electric car manufacturer XPeng has significantly lowered its prices, in particular to deal with the American manufacturer in China. Except that if customers are used to fluctuations at Tesla, this is not necessarily the case for other brands.
Thus, XPeng lowered the prices of its P5, P7 and G3 SUV on January 17, 2023, with decreases between 20,000 and 36,000 yuan, i.e. between 2,700 and 4,900 euros at the current exchange rate. The drop seems less spectacular than here in Europe with Tesla, but there have been no more tax advantages for electric cars in China since the beginning of 2023.
Watch out for unhappy customers
This drop in prices will obviously make happy customers who plan to buy an XPeng or who have simply ordered the car recently, but this will not be the case for those who have recently taken delivery of the car. To deal with dissatisfaction, the Chinese manufacturer has made a move by offering up to four years of maintenance for their vehicle and a 10-year or 200,000 km warranty to customers who have recently received one of the models affected by the drop. of price.
Xpeng no doubt wanted to take the lead to avoid scenes similar to what may have happened at Tesla in China, namely demonstrations in shops. Recently, a Tesla Cyberquad was destroyed and products were stolen due to the price drop.
Remember that on the side of Tesla if your car has not yet been delivered and you have therefore not yet paid the invoice issued, you can take advantage of the new prices. If you’ve paid the invoice, but not yet taken delivery of the model, that’s also still good. On the other hand, if you recently purchased your Model 3 or Model Y, with the old prices, and it has already been delivered to you, you will not be able to take advantage of the new prices.
Enough to counter Tesla?
At the beginning of the year, practically all Chinese manufacturers announced an increase in their prices in China, but that was without counting Tesla, which took them all on the wrong foot by drastically lowering its prices. The Tesla Model 3 Propulsion therefore went from 265,900 yuan (about 36,200 euros) to 229,900 yuan (about 31,300 euros), while the Model Y Propulsion went from 288,900 yuan (about 39,300 euros) to 259,900 yuan ( €35,300).
The XPeng P5 therefore goes from 179,900 yuan (24,500 euros) to 156,900 yuan (21,300 euros) in the basic version, the XPeng P7 from 239,900 yuan (32,600 euros) to 209,900 yuan (28,500 euros), and the G3 SUV from 168,900 (23,000 euros) to 148,900 yuan (20,300 euros). All of these prices include entry-level models, but like Tesla, high-end and extended-range trims are also affected by lower prices.
A few days ago, another Chinese manufacturer by the name of Aito also lowered its prices as relayed IT Home : up to 30,000 yuan, or about 4,000 euros, less on the final bill. The manufacturer has also given gifts to customers who bought before the price drop, with a longer warranty, free maintenance and free Huawei products.
It only remains to see if the other manufacturers will also take the path of the price war. But it seems complicated. Tesla can afford it with its mind-blowing margins in the automotive industry. This is not the case with other manufacturers.
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