German carmaker BMW has reduced the price of its electric iX3 SUV made in China, bringing the car into close competition with cars from Tesla and Chinese startups such as Nio.
BMW’s website said that from Thursday, the recommended retail price of the iX3 will start at 399,900 yuan ($ 61,713).
That dropped by 70,100 yuan – or about $ 10,800 and 15% cheaper – compared to the original price of 470,000 yuan announced in September.
Competitive Pricing
“For its size the iX3 would be competing directly vs. the Tesla Model Y & NIO ES6 which both have starting prices substantially less than the iX3 prior to this cut, so BMW must’ve seen softness in the demand for the iX3 at that price point,” said Tu Le, founder of Beijing-based advisory firm Sino Auto Insights. “Bottom line it wasn’t competitive.”
BMW cut the price on a higher-end version of the iX3 by the same 70,100 yuan amount, with a new price of 439,900 yuan, down from 510,000 yuan. A company representative did not immediately respond to the email request for comment.
The price reduction follows Tesla’s 30% reduction in its Model Y made in China earlier this year to 339,900 yuan, down from 488,000 yuan, according to Chinese media reports.
By comparison, the Nio’s ES6 electric car sells for 358,000 yuan to 468,000 yuan.
Boom In Electric Vehicles
BMW is producing iX3 in China in partnership with Brilliance Auto. The car made in China is expected to be the first of its joint venture to export, according to a German car manufacturer.
Global car companies are looking forward to China launching their latest electric cars. The country is the largest car market in the world and the government has established an electric car market with the support and rollout of battery charging infrastructure.
Sales of new energy vehicles, including both plug-in hybrid and pure electric vehicles, are expected to increase by 40% this year to 1.8 million, according to the China Association of Automobile Manufacturers. Sales of new energy vehicles last year increased by 10.9% to 1.367 million despite a sharp decline in car sales and the coronavirus pandemic, the organization said.
Synopsis
- BMW’s all-electric iX3 SUV will cost 399,900 yuan ($61,713) to 439,900 yuan in China as of Thursday, the German automaker said on its website.
- That’s down about $10,800 from the original price range of 470,000 yuan to 510,000 yuan announced in September.
- The new price brings BMW’s China-made iX3 into a closer range with locally available electric cars from Tesla and Chinese start-ups.
