A BMW iX3 electric SUV is on display during the Beijing International Automotive Exhibition 2020 (Auto China 2020) at the China International Exhibition Center on September 26, 2020 in Beijing, China.
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BEIJING – German automaker BMW has slashed prices for its all-electric iX3 SUV in China, putting the car in tougher competition with Tesla vehicles and Chinese start-ups like Nio.
The BMW website said on Thursday that the recommended retail price for the iX3 will start at 399,900 yuan ($ 61,713).
This represents a drop of 70,100 yuan – or about $ 10,800 and 15% cheaper – compared to the original price of 470,000 yuan announced in September.
“Because of its size, the iX3 would be competing directly with the Tesla Model Y & NIO ES6, which had substantially lower starting prices than the iX3 before this cut, so BMW must have seen smooth demand for the iX3 at that point price,” said Tu Le, founder of Beijing-based consulting firm Sino Auto Insights. “In short, it was not competitive.”
BMW cut the price of a more sophisticated version of the iX3 by the same amount of 70,100 yuan, for a new price of 439,900 yuan, down from 510,000 yuan. A company representative did not immediately respond to a request for comment sent via email.
The price drop follows Tesla’s 30% cut in its Model Y made in China earlier this year to 339,900 yuan, down from 488,000 yuan, according to Chinese media reports.
For comparison, the ES6 from Chinese electric car start-up Nio sells for 358,000 yuan to 468,000 yuan.
BMW manufactures the iX3 in China through a joint venture with Brilliance Auto. The car made in China should be the first that the joint venture will export to other countries, according to the German automaker.
Global automakers are increasingly looking to China to launch their latest electric cars. The country is the largest automotive market in the world and the government has supported the electric vehicle market with subsidies and the implementation of battery charging infrastructure.
Sales of new energy vehicles, which include plug-in hybrid and pure electric cars, are expected to increase 40% this year to 1.8 million, according to the Chinese Association of Automobile Manufacturers. Sales of new energy vehicles last year increased 10.9% to 1.367 million vehicles, despite the general drop in car sales and the coronavirus pandemic, the association said.