Price war reaches Europe
Car manufacturers are increasingly relying on high discounts for e-cars
08/04/2023 11:57 am
In Asia, the price war in the fight for market share has been raging for some time. According to a study, the wave is now also reaching Europe. Buyers of electric vehicles from the premium segment therefore benefit from an average price reduction of 14 percent.
Car manufacturers are increasingly granting price reductions to buyers of electric cars in Germany. According to a study by management consultancy PwC Strategy&, the average discount for electric vehicles in the premium segment rose by a quarter to 14 percent from June to July. In the middle segment, the average discount rose by a third to 11 percent. “Only in the volume market, where the highest government purchase premiums continue to lure, have the discounts remained largely the same” at 9 to 10 percent, PwC said.
“In the fight for market share, car manufacturers are fighting a BEV discount battle that is now reaching Europe,” explained the industry experts. After corona lockdowns and delivery bottlenecks had caused a shortage of supply and high prices for a long time, car production is picking up again. The data “shows that car manufacturers in the German market are increasingly opting for discounts and are also granting them for BEVs”.
E-cars will become suitable for the masses
With a share of almost 16 percent of registrations, the Stromer are now on the threshold of the mass market. This means that “normal market conditions now also prevail in the electrical segment, with everything that goes with it,” said PwC industry expert Felix Kuhnert. “The early adopters and buyers with conviction have stocked up. Now the mainstream buyers are grabbing it, but they apply tougher criteria in terms of product and price.”
The rebates weighed on profit margins. In addition, the prices for lithium and other raw materials rose again. The German car manufacturers would be forced into a price war that they could only survive if they had a buffer in terms of costs. Stromers built in Germany are around 40 percent more expensive than the same models that are built and sold in China. Chinese car companies are also selling their Stromer in Germany around 40 percent more expensive than in China, where there have just been further price reductions.