Ford follows the Tesla Model Y price cut with Mustang Mach-E tag reduction and makes two trims eligible for subsidies in China

Ford has followed the Tesla Model 3 and Model Y price cut in China, and lowered the starting tag of its successful Mustang Mach-E electric crossover there. The American brands are not the only ones slashing their electric vehicle prices, though, as even formidable local competition like XPeng has initiated price cuts faced with softening demand in the world's largest EV market.

Ford started selling the Mustang Mach-E in China last December, after taking preorder reservations for it since the spring and, despite fluctuating market conditions, it kept its starting price of about US$37,990 in local currency intact. This same Mustang Mach-E version now costs the equivalent of US$34,242 as Ford announced a 9% price cut across the board, or about the same percentage cut that Tesla lowered the Model Y and Model 3 prices with.

Not only that, but the Mustang Mach-E price reduction now puts both the base model and the next trim under the government's subsidy threshold as well, making the electric crossover even cheaper for local customers. Since the Mach-E entered the Chinese market, it has sold a few thousand units only, as there is a record number of EV makers there jostling for the same customers, while the local companies have the advantage of being the home team in the world's most developed EV and battery-making industry market, backed by a decade of government policies to spearhead its growth.

With the latest Mustang Mach-E price cut, however, the electric crossover is becoming very competitive and its sales might get the boost that Tesla experienced after it cut the Model Y and Model 3 prices to address increased competition and tepid demand growth.

Get the Weatherproof F-150 Lightning truck cover on Amazon