Ford has cut the price of its Mustang Mach-E electric SUV in China, undercutting offerings from Tesla in the country.
Tesla’s dominant position in the automotive industry has only become more visible in recent months as the automaker has cut prices on its popular models, forcing competitors to do the same. Ford reacted first in the United States, cutting the price of the Mustang Mach-E by $5,900, and has now also done so in China, cutting the electric SUV’s price by 40,000 yuan ($5,700), according to Reuters.
With a new starting price of 209,900 yuan ($30,206), the Ford Mustang Mach-E not only undercuts the ever-popular Tesla Model Y, which starts at 261,900 yuan ($37,613), but also the Tesla Model 3, which starts at 229,900 yuan ($33,017).
In 2022, Ford delivered just over 7,000 Mustang Mach-Es in China, but that number is likely to increase dramatically this year as the Blue Oval ramps production considerably. Ford announced earlier this month that it would aim to achieve an annual run rate of 210,000 Mustang Mach-Es by the end of the year. This is combined with substantial ramps in producing F-150 Lightning, E-Transit, Maverick, and Bronco Sport vehicles.
Ford has not yet been able to emulate the sales success of Tesla or its traditional rival GM with its Wuling Mini EV, but with this price cut and considerable ramp in production, it certainly has the chance to do so.
Perhaps most surprising is that this price cut will not be the base price of the Mustang Mach-E for long, considering Ford is introducing a new LFP battery option to the SUV following the construction of its newest battery production facility in Western Michigan.
Europe is the only remaining market where the Mustang Mach-E is sold, where Ford has yet to institute a price cut. Still, with the increasing competitiveness of the European market, Ford is likely to do so sooner rather than later.
It remains unclear how the market will react to Ford’s new aggressive pricing of its EVs, but it certainly won’t hurt the brand as it looks to grow its EV marketshare globally. Hopefully, these price cuts can help more and more people switch to EVs globally in the coming years.