Automakers respond to Tesla

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Tesla recently made a significant price cut in almost every market, catching many 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.

XPeng P5

At Tesla, price fluctuation is an exercise that the American manufacturer has handled brilliantly for almost ten years. The best example dates from a few days ago in Europe, and more specifically in France, with the Tesla Model 3, whose price dropped almost 15,000 euros overnight, in particular thanks to the reintegration of the ecological bonus into the equation. .

But in the face of a tough economy, Tesla has lowered its prices more generally around the world, starting with China earlier in the year when sales were starting to dry up. To understand how prices are set at Tesla and why they fluctuate so much, feel free to check out our dedicated file.

The fear of Tesla in China?

The other brands generate their prices from year to year. These are called model years, and prices generally don’t move much in the current year. It is usually in August when these updates are made, except for Tesla, therefore, who sets his prices as he sees fitas its business constraints and distribution network are less extensive and less complicated compared to other manufacturers.

In response to Tesla, Asian media reports IT Home, 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 isn’t necessarily the case with other brands.

Thus, XPeng lowered the prices of its P5, P7 and G3 SUVs on January 17, 2023, with decreases between 20,000 and 36,000 yuan, that is, between 2,700 and 4,900 euros at the current exchange rate. The drop seems less dramatic than here in Europe with Tesla, but there have been no more tax breaks for electric cars in China since early 2023.

XPeng P7

Beware of dissatisfied customers

This drop in prices will obviously make customers who are planning to buy an XPeng or who just recently ordered the car happy. but this will not be the case for those who have recently received the car.. To deal with dissatisfaction, the Chinese manufacturer has taken a step by offering up to four years of maintenance for its vehicle and a 10-year or 200,000 km warranty to customers who have recently received one of the models affected by the price drop. .

No doubt Xpeng wanted to take the initiative to avoid scenes similar to what could have happened at Tesla in China, namely in-store demonstrations. Recently, a Tesla Cyberquad was vandalized and products were stolen due to the price drop.

Remember that from Tesla if your car has not yet been delivered and therefore you have not yet paid the issued invoice, you can benefit from the new prices. If you paid the bill, but still haven’t received the model, that’s also good. On the other hand, if you recently bought your Model 3 or Model Y, at the old prices, and it has already been delivered to you, you will not be able to take advantage of the new prices.

XPeng G3

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 not counting Tesla, who took them all on the wrong foot by drastically lowering their 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 (about 35,300 euros).

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 SUV G3 from 168,900 ( 23,000 euros). euros) to 148,900 yuan (20,300 euros). All of these prices include entry-level models, but like Tesla, the higher-end and extended-range models are also affected by lower prices.

A few days ago, another Chinese manufacturer named Aito also lowered its prices as it was broadcast. 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 be seen if the rest of the manufacturers will also take the path of the price war. But it seems complicated. Tesla can afford it with its mind-boggling margins in the auto industry. This is not the case with other manufacturers.

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