Car manufacturer initiates budget-friendly strategy, aiming to decrease electric vehicle prices
In the rapidly evolving world of electric vehicles (EVs), a new chapter has been written as Ford joins the price war fray, following in the footsteps of Chinese manufacturers like BYD. The American car giant is offering its new electric vehicle, a pickup, at prices ranging from 10,000 euros to 25,000 euros - significantly lower than the average prices in the USA.
This aggressive pricing strategy is not without risk, as it could potentially erode profit margins and lead to increased competition. However, the price drop in EVs is expected to delight many car drivers and may force other manufacturers to come up with competitive pricing strategies.
Ford is not alone in this move. The Chinese company CATL is supplying batteries for Ford's new, more affordable EV models, a partnership that is likely to reshape the EV landscape.
The current state of the EV price war is marked by intense price cuts and fierce competition, leading to industry-wide challenges such as oversupply and shrinking profit margins. The Chinese government has intervened, urging EV makers to halt counterproductive price wars, highlighting risks of "involution" (diminishing returns despite increased efforts) and threats to economic growth.
BYD, a Chinese car manufacturer, led a major price offensive in May 2025, offering discounts up to 34% on 22 models. This aggressive pricing caused profit margins in China’s auto industry to fall from 4.6% to 3.9% year-on-year and provoked warnings from industry associations about business disruption and supply chain instability.
Despite the challenges, Ford is assembling a special team to develop comparatively affordable, competitive EVs. The employment numbers in Kentucky, where the new vehicle model is being produced, are expected to remain the same. The new electric vehicle from Ford will be available for around 30,000 US dollars (approximately 25,700 euros).
Experts from competitors like Tesla may be part of the special team at Ford, a move that could bring fresh perspectives and innovative ideas to the table. The price drop in EVs is a trend expected to continue in the coming years, reshaping competition both domestically within China and internationally.
As the EV price war continues, it remains to be seen how the industry will adapt and navigate the challenges posed by this aggressive pricing strategy. One thing is certain, however: the future of the EV market is shaping up to be an exciting and dynamic one.
[1] "China's EV makers urged to halt price wars as oversupply looms." Reuters, 2025. [2] "China's EV makers slash prices, but at what cost?" Bloomberg, 2025. [3] "China's EV market: The price war that's causing headaches." CNBC, 2025. [4] "China's EV brands expand globally, but face pushback." Financial Times, 2025. [5] "Global EV sales set to exceed 20 million units in 2025." IHS Markit, 2025.
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