SAIC lowers prices for the MG Mulan in China
MG Motor is reacting to the price reduction for the VW ID.3 in China and has lowered the price of its competitor model MG Mulan. For the time being, until the end of July, Chinese customers will receive a discount of 24,000 yuan, or about 3,000 euros, for the compact electric car.
This brings the starting price of the MG Mulan down to 115,800 yuan, or about 14,500 euros. The low-priced VW ID.3 costs about 10,000 Yuan more (125,888 Yuan) after the latest price reduction. In addition, customers of the MG Mulan get further incentives such as zero per cent financing, a charger worth 4,000 yuan and a “lifetime warranty on core components” worth 9,000 yuan.
On the purchase price alone, MG Motor’s July promotion equates to a 17 per cent discount. Even though the promotion was only announced on 12 July (and thus probably in reaction to the VW offer), the discounts are to apply to all customers who buy or have already bought an MG Mulan between 1 and 31 July.
At Volkswagen, too, the price reduction for the ID.3 has so far only been valid in July. However, an extension or a further reduction beyond that is likely in view of the fierce price war for electric cars in China.
According to the manufacturer, the MG Mulan, which is marketed as MG4 outside China, was the best-selling electric model of Chinese brands in Europe from January to May. The MG4 was reportedly registered around 23,100 times in Europe during this period, while the VW ID.3 came in at just under 28,000 registrations.
The price action at SAIC’s MG brand is also interesting in that SAIC was one of the signatories of the CAAM declaration. The China Association of Automobile Manufacturers (CAAM) had issued a declaration on 6 July together with 16 carmakers in which the latter pledged “not to disturb the order of fair competition in the market by charging abnormal prices”. However, this declaration was withdrawn by the CAAM two days later, as it was “not compatible with the principles of China’s Anti-Monopoly Law”.