An electric BMW iX3 sport utility vehicle will be on display during the Beijing International International Exhibition (Auto China 2020) in 2020 at China International Exhibition Center on September 26, 2020 in Beijing, China.
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BEIJING – German carmaker BMW has lowered prices for its all-electric iX3 sports utility vehicle in China, bringing the car into greater competition with vehicles from Tesla and Chinese beginners such as Nio.
BMW’s website said on Thursday that the recommended selling price for the iX3 would start at 399,900 yuan ($ 61,713).
That’s 70,100 yuan – or about $ 10,800 and 15% cheaper – compared to the original price of 470,000 yuan announced in September.
“For its size, the iX3 will compete directly with the Tesla Model Y & NIO ES6, both of which are significantly lower than the iX3 before this reduction. BMW should therefore have seen soft in the demand for the iX3 at that price. Point,” says Tu Le, founder of the consulting firm Sino Auto Insights in Beijing. “In the end, it was not competitive.”
BMW lowered the price of a higher version of the iX3 by the same amount of 70,100 yuan, at a new price of 439,900 yuan, lower than 510,000 yuan. A company representative did not immediately respond to a request for comment.
The price drop follows the 30% reduction from Tesla to its China-made Model Y earlier this year to 339,900 yuan, compared to 488,000 yuan, according to Chinese media reports.
By comparison, the Chinese electric car Nios sells ES6 for 358,000 yuan to 468,000 yuan.
BMW is manufacturing the iX3 in China through a joint venture with Brilliance Auto. According to the German carmaker, the Chinese-made car will be the first to export the joint venture to other countries.
Global car companies are increasingly looking to China to introduce their latest electric cars. The country is the world’s largest automotive market 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 both plug-in hybrid and pure electric motors, will increase by 40% to 1.8 million this year, according to the Chinese Association of Motor Manufacturers. Sales of new energy vehicles rose 10.9% last year to 1.367 million vehicles, despite an overall decline in car sales and the coronavirus pandemic, the association said.