Ford has decided to lower prices of the Mustang Mach-E in China, where it's locally produced for the Chinese market.
Production started a year ago - in October 2021, while the first customers received their cars just before end of the year, on December 26.
Initially, Ford offers four versions, starting at 265,000 CNY ($36,296) in the case of the Standard Range RWD version. The top GT First Edition version was significantly more expensive at 379,900 CNY.
In May 2022, the company decided to increase prices by 7,000-22,500 CNY ($958-$3,082) but as of October 31, the prices went down by 20,000-28,000 CNY ($2,739-$3,835), which represents about a 5-10% reduction, depending on the version.
According to Ford (via CnEVPost), the entry-level Ford Mustang Mach-E now starts at 249,900 CNY ($34,228):
- Standard Range RWD: *249,900 CNY ($34,228) - down 10.4%
- Extended Range RWD: *288,900 CNY ($39,570) - down 9.7%
- Extended Range AWD: 349,900 CNY ($47,925) - down 5.7%
- GT: 369,900 CNY ($50,664) - down 5.4%
* the two first versions include 11,088 CNY subsidy (eligible for BEVs with prices under 300,000 CNY)
According to the article, Ford emphasized in its announcement that the two versions eligible for subsidies are available in stock. This suggests that the production capacity was higher than the demand at the previous price point.
It's not clear how many Ford Mustang Mach-Es have been produced and sold so far in China, but it's estimated by some local media at "a few thousand units."
That would be only a small addition to the main production in Mexico, which already exceeded 125,000 (as of the end of September), including over 55,000 sales in the US.
The Chinese media wonders now whether Ford's move is somehow related to Tesla's recent price cuts in China by 5-9%. A less expensive Tesla Model Y (the best-selling model in China last month) is for sure a thing to consider - especially if there are cars in "stock" and there will be no subsidies in 2023 (exemption from purchase tax remains in power in 2023).
Tesla Model Y prices (as of October 24, 2022):
- Model Y RWD (LFP): *288,900 CNY ($39,776) - down 28,000 CNY or 8.8%
- Model Y Long Range AWD: 357,900 CNY ($49,277) - down 37,000 CNY or 9.4%
- Model Y Performance: 397,900 CNY ($54,784) - down 20,000 CNY or 4.8%
* including 11,088 CNY ($1,526) subsidy
By the way, the no-cost Silver paint option, available exclusively for the base Tesla Model Y RWD, was removed a few days after Tesla reduced prices, which suggests that local order inflow improved to make it a paid option again.
