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Karam el Shenawy
May 11, 2023
The CEO of Stellantis assures that the price war for electric cars does not favor the European industry at all
With a rising electricity market, at least as far as models are concerned, manufacturers seem to have started a price war in which, for now, the winner is Tesla. And it is that the signature of Elon Musk has been lowering the rate of his models for months, considered upper-middle-range, with the aim of increasing their sales. Circumstance that has been achieved since the Model Y is the best-selling electric vehicle in our market and stood as the third most sold in the world in 2022. Variable to which now have been added to the innumerable Chinese brands that are landing on the Old Continentmany of them with the aim of ‘throwing’ their prices in order to shake the centenary manufacturers.
It may interest you: Chinese cars arriving in Spain in 2023: buying guide
In this sense, the executive director of Xpeng, Brian Gu, declared a few weeks ago that electrification would cause the disappearance of many manufacturers in the next 10 years, leaving the account at approximately a dozen. A rather ominous statement that we don’t think is going to happen, although it could be backed by the latest statements by Carlos Tavares made at the ‘Car Symposium’ in Bochum in which he has been emphatic.
And it is that the CEO of Stellantis has once again confirmed that the European industry is in serious danger of ending up disappearing for “In 10 years I will be serving coffee to Chinese and American tourists”. Statements that come up with the price reduction that these two regions are proposing through their native manufacturers of electric cars. because according to Tavares, if you want to have cars for less than 25,000 euros, these will end up being assembled outside the Old Continent and more specifically in the two mentioned territories.
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To avoid this, make sure that “We should ask the European Union to impose the same conditions in Europe for Chinese manufacturers under which we Western manufacturers compete in China. The European market is completely open to the Chinese and we don’t know if your strategy is to gain market share at a loss and increase its price later. However, he remains opposed to tariff measures that would only increase prices further, so part of his solution is to “accept competition and work more and more efficiently.”
