Mobility Portal, Spain
Date: February 21, 2024
Mobility Portal Favicon
By Mobility Portal

Following Tesla’s strategy: 5 car manufacturers lower the prices of their EVs

Volkswagen, Kia, Cupra, BYD, and MG have reduced their prices by between 4,000 and 7,000 euros, thus reaching prices similar to combustion cars. Which models will enjoy discounts?
car manufacturers lower the prices of their EVs

According to an analysis by the Organization of Consumers and Users (OCU), five electric vehicle (EV) manufacturers -Volkswagen, Kia, Cupra, BYD, and MG- have reduced their prices by between 4,000 and 7,000 euros in February, thus reaching prices similar to combustion cars.

The organization explains that these brands are following the strategy that Tesla implemented last year when it applied discounts equal to or greater than 4,000 euros on the Model 3, and which it repeated a few months ago on the Model Y, with a reduction of 3,000 euros.

Specifically, between February 1st and 15th, Volkswagen reduced the price of its ID3 model by about 7,010 euros; BYD discounted 5,410 euros from its Atto 3 car; Cupra, 5,040 euros from its Born 77kWh; Kia, 4,615 euros from its Niro; MG, 4,000 euros on its MG 4 model; and Tesla lowered the price of its Model Y by 3,000 euros since early January.

The OCU explains that after the price adjustment by some manufacturers, it is now more affordable to purchase an electric car and adds that there are purchase incentives of 4,500 euros, which are applied to these prices, and which can reach 7,000 euros if an old car is scrapped.

Even if the help is not obtained, the price difference is quickly amortized, thanks to the fact that recharging the car with electricity costs less than refueling with petrol.

The consumer organization states that the fuel cost per 100,000 kilometers would be 10,500 euros in the Volkswagen Golf, but only 3,500 euros in the VW ID3.

That is, they save 7,000 euros every 100,000 kilometers, so the 3,000 euros extra cost of the ID3 is amortized in just under 60,000 kilometers.

This means only two or three years for someone who makes average use of their car.

Finally, OCU claims that the incentives of Plan Moves III in Spain should be extended beyond July 31st, when it is scheduled to end.

“This would also facilitate citizens’ access to low-emission zones, especially considering that the market share of electric cars in Spain is barely five per cent compared to the rest of Europe’s 15 per cent,” it concludes.

Separator Single Post

Leave a Reply

Your email address will not be published. Required fields are marked *