Ire over Tesla’s surprise China price cuts highlights challenge for premium EV brands as consumers tighten budgets
- Protests over the US carmaker’s sudden price change indicate that sales growth will be difficult for premium brands this year
- Analyst says anger among those who bought before the unannounced change shows that consumers have ‘become extremely sensitive to price changes’
The dissatisfied buyers felt that the company, which has been known for its price transparency, should have given more advance warning of the reductions, especially as they followed close on the heels of a previous price cut.
“The protests represented a rude reminder to premium EV builders that it will be very difficult to chase sales growth this year, because consumers have become extremely sensitive to price changes,” said Chen Xiao, CEO of Shanghai Yacheng Culture, a firm that deals with marketing and branding for consumer brands. “When Chinese consumers tighten their budgets, they will be active in hunting bargains.”
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Tesla owners in China protest against price cuts as consumers tighten budgets
Tesla’s surprise discount for its Shanghai-made cars on Friday came just over two months after it cut prices by up to 9.4 per cent in late October.