Many brands are currently offering huge discounts, as Michael Ziegler, president of the Baden-Württemberg motor vehicle industry association, explains in an interview with the newspaper Handelsblatt.
Great Wall Motor (GWM) offers a discount of 12,000 euros for the small Ora 3 with an electric range of 310 kilometers. The discounts are also particularly high with the Chinese supplier BYD. Here, car buyers can save up to 19,000 euros on the premium Han model. At MG, each electric car is accompanied by an electricity bonus worth 6,000 euros.
The reason for the drastic discounts is the failed attempts by Chinese electric car suppliers to gain market share in Europe. Suppliers such as BYD and GWM currently account for 3.1 percent of the total European market.
“Initial stage of a price war”
It is important for Chinese electric car manufacturers to enter the market now. Starting at the end of 2024, the European Union wants to impose higher tariffs on car imports from China. The surcharge should increase from ten to 15 percent. This is one of the reasons why car manufacturers in the Far East are aiming for high sales figures. “We are at the beginning of a price war,” Ziegler predicts.
The discount battle is not only driven by Chinese suppliers. Western car manufacturers are also getting to work and offering significant discounts. The most recent example is Volkswagen. For the ID.4 and ID.5 the price drops to 7735 euros. Dacia currently sells the Spring Electric for 12,750 euros (the discount is 40 percent). Tesla is also offering a discount of 5,000 euros (almost nine percent) on the Model Y.
That is why prices are falling in the German market
The elimination of the state environmental bonus for electric cars and the recession could delay the drastic evolution of prices for a few more months. The demand “barely exists,” says the expert. “It's getting closer to zero.” The industry is therefore facing “chaos,” says Constantin M. Gall, a mobility expert at EY. Uncertainty among customers is great, says Michael Kraft, managing partner of the Mercedes-Benz dealership Neils & Kraft in Gießen, Hesse.
How do you benefit from falling prices?
Those interested can currently get the biggest offers on standard vehicles. These are all cars that have already been produced but have not yet been registered. “Due to the sharp increase in the number of new vehicles and the variety of models in recent years, the number of young leasing returns offered on the usual sales portals is increasing significantly,” highlights the ADAC.
To hide price dumping, almost all EV manufacturers primarily reduce leasing rates. Opel offers the Crossland SUV for 33 euros per month. Therefore, potential buyers should also consider this option.
The biggest bargains now lurk here
See the overview where you can get bargains now. The biggest discounts are given in Dacia (more than 40 percent).