In October, Tesla lowered the prices of electric car models produced in a huge factory on the outskirts of Shanghai. Things heated up when another discount was made locally that made Tesla cars 14% cheaper than last year. Some models cost almost 50% less than in the US and Europe.
Competitors are left with no choice but to follow the lead of Elon Musk’s company. Among them were both “starters” in the field of electric vehicle production and leading international manufacturers: Volkswagen AG and Mercedes-Benz Group AG. There are about 30 automakers in total. “Tesla created chaossaid Jochen Siebert, managing director of JSC Automotive.
Ultimately, this week the China Auto Manufacturers Association called for an end to the price war, saying there is no long-term solution to slowing sales and stockpiling.
“The situation will continue to be challenging until mid-2024.”says Tu Le, managing director of consulting firm Sino Auto Insights.
Source: Ferra
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