A little over a month after Ford slashed Mustang Mach-E prices in the United States by as much as $5,900, the Dearborn-based automaker is taking a similar approach in China.
Ford Motor Company today introduced a discount of $5,750 (40,000 yuan) on its Mustang Mach-E electric SUV in China; the discount is valid until the end of April.
The Mustang Mach-E now starts at around $30,200 (209,900 yuan) in China after the discount, a company representative at Ford China told Reuters. The electric SUV, which is made in China for the local market, is significantly more affordable than the US-spec model that's made in Mexico.
The Ford Mustang Mach-E currently starts at $47,495 in the US, including a $1,500 destination charge but excluding potential federal tax credits of up to $7,500.
Ford's decision to slash Mach-E prices in China is likely a reply to Tesla's major price cuts applied to the Model Y in January 2023. The move is also aimed at boosting sales in the world's largest car market.
The Blue Oval sold just 7,782 Mustang Mach-E vehicles in China last year, which is a drop in the bucket compared to Tesla's 455,091 Model Ys sold in the country in the same year, according to data from China Association of Automobile Manufacturers (CAAM). In the US, Ford sold 39,458 Mach-Es last year, 45 percent more than in 2021.
It's worth noting that Ford had already slashed Mustang Mach-E prices in China by up to 10 percent in October 2022, days after Tesla did the same for the Model Y.
Ford said in November it was increasing Mustang Mach-E production and targeting a global annual output rate of 270,000 by the end of 2023, including its China production.
Since October 2021, the Chinese-spec Mach-E is built by the Changan Ford joint venture at its plant in Chongqing. Ford started deliveries of the Chongqing-made Mustang Mach-E in China in December 2021.
On a related note, Ford began increasing production of the Mustang Mach-E this week at its plant in Cuautitlan, Mexico. The changes made at the plant will allow the carmaker to nearly double its hourly production and reach the targeted annual manufacturing run rate of 210,000 units by years' end.