Volkswagen is making it clear it is not going to partake within the EV worth struggle spurred by Tesla’s current worth cuts.

Is an EV worth struggle on the horizon?

After Tesla slashed costs in China, the US, and the EU, throughout its lineup of electrical automobiles, together with a 20% low cost on the Mannequin Y, analysts predicted it might have a spillover impact on different BEV producers.

We first noticed it occur in China when EV maker Xpeng lowered costs by as much as $5,300 on a few of its hottest fashions shortly following the Tesla worth cuts.

Though Tesla noticed “unprecedented demand” as many shops hit new information following the cuts, it put basically each different automaker (startups and legacy) in a spot to compete.

For instance, Vinfast, a Vietnamese EV maker trying to set up a presence within the US, is providing a brand new particular pricing promotion on its first mannequin to make it to the states, the VF 8 Metropolis Version, which is able to now begin at $49,000 with an addition $3,000 direct low cost off the MSRP.

Amid rising indications of an EV worth struggle brewing, Ford additionally slashed costs on its ever-popular Mach-E electrical SUV earlier this week. Marin Gjaja, chief buyer officer for Ford’s EV unit, advised Automotive Information:

We now have to compete. It’s a aggressive market, and it simply received much more aggressive due to what Tesla did. We’re not going to cede floor to anybody.

Volkswagen’s chief says the corporate will take a distinct route, sticking to its pricing technique regardless of demand issues.

VW not matching Tesla’s worth cuts

In line with VW CEO Oliver Blume’s current statements, the automaker already has a pricing technique in place and can stand by it.

Blume advised German newspapers it might not partake in a worth struggle with Tesla, stating:

We now have a transparent pricing technique and are specializing in reliability. We belief within the energy of our merchandise and types.

VW joins Normal Motors, which additionally introduced it might not provide EV worth cuts throughout its newest earnings launch.

As a substitute of worth cuts, VW will goal to realize worthwhile development to change into a world EV chief. The automaker delivered round 330,000 ID.4 fashions in 2022, up 23%, and over 580,000 ID fashions since launching in 2020.

Volkswagen Group not too long ago introduced again former Bentley and Audi designer Andreas Mindt to assist lead the corporate’s EV efforts and convey the corporate into the trendy age.

Electrek’s Take

Tesla’s worth cuts are clearly having a profound impact on the EV market. Because the EV chief continues to shatter expectations whereas repeatedly breaking electrical automobile supply information, it’s making it tough for different automakers to compete, particularly with decrease costs.

Tesla is lightyears forward when it comes to manufacturing capabilities due to its give attention to zero-emissions EVs from the start; different auto producers at the moment are trying to catch up.

Whereas Ford is reducing costs to compete, GM and VW are standing by their pricing methods. We’ll see how the pricing battle performs out over the subsequent few months.