New buyer groups and discounts
VW wants to boost electric car sales – prices will fall
October 1, 2023, 2:14 p.m
Car manufacturers are ramping up production of electric cars. However, demand is limited. Volkswagen therefore also wants to target buyers other than technology enthusiasts and homeowners. An expert also sees prices under pressure – and expects discounts.
Buyers of electric cars can expect significantly lower prices in the future than just a few weeks ago. “The competition is clearly becoming more intense and there are more players on the market,” said VW sales director Imelda Labbé to “Automobilwoche”. She continued: “We and the entire industry are currently in the ramp-up of electromobility and are now getting into volume.” Falling prices are possible due to economies of scale and new technologies.
However, because there is also a lack of demand for the increasing volume, manufacturers are under massive pressure to stimulate demand with discounts. “We assume that demand will weaken at the end of the year or at the beginning of 2024 and that discount pressure will then increase significantly,” said Martin Benecke, senior manager at S&P Global, to “Automobilwoche”.
A number of manufacturers have already offered high discounts. Especially with electric cars: As part of a campaign, Fiat increased the dealer margin for the 500e by 20 percent. Volkswagen is making similar offers, especially for its Seat and Skoda brands.
In order to advance electromobility, it must become a more realistic option for broader groups of buyers, said VW manager Labbé. “We’re now at 15 percent. If we want to go beyond that, we have to leave the segment of so-called early adopters and homeowners. We also have to reach those who don’t have their own house and therefore don’t have a secure charging infrastructure.” Therefore, “electric vehicles should be given greater priority again in customer preference”.