Ford Motor ($F) is the latest automaker to offer a discount on its electric vehicle in China as competition continues heating up. Ford said on Wednesday that Mustang Mach-E buyers in the region would be eligible for a new promotion, with discounted prices starting at around $30,000.
Ford discounts the Mustang Mach-E in China
Despite Ford’s success in its home market, growing to become the second-largest EV maker in the US last year behind only Tesla, the market in China has proven more challenging to break through.
Ford sold just 7,782 Mustang Mach-E models in China last year, compared to nearly 40,000 in the US.
To keep pace in the rapidly expanding Chinese EV market, the automaker is discounting the price of its electric SUV. According to a report from Reuters, Ford is offering up to $5,700 (40,000 yuan) off the Mach-E until the end of April.
A representative from Ford said Mach-E prices would start at just over $30,000 (209,900 yuan) following the pricing promotion.
Ford is the latest to join the growing list of automakers offering discounts on their popular EV models in China to stimulate demand.
After Tesla slashed prices on the Model 3 and Model Y in early January, Citi Analyst Jeff Chung said it would “create a negative spillover effect” on other automakers’ backlogs in China.
It started with Chinese EV maker XPeng dropping prices by up to $5,300, with several auto manufacturers following. Last month, Toyota cut prices on its bZ4X electric SUV by 15%, with a new starting price under $25,000 (169,800 RMB).
Ford’s discount in China comes after already slashing Mach-E prices in the US by up to $5,900.
Is Ford’s Mach-E discount in China a sign of slowing demand? It could be as competition heats up in the largest EV market globally.
With several brands such as BYD releasing cost-effective electric vehicle solutions and startups like NIO rapdily expanding in the region, legacy automakers are struggling to keep up.
However, Ford has also discounted prices in the US to keep pace with EV leader Tesla. The discounts could be part of Ford’s strategy to close the gap and accelerate sales.