For months, Europe has been trying to compete with cheap Chinese electric cars and so far the battle has been unsuccessful. And as the EU looks for a way to counter Asian EVs that are undercutting the European car market, Stellantis is making a pretty aggressive move, Bloomberg reports.
The Citroën brand, which is part of the Italian-French group, will start accepting reservations for its new electric is a model–C3, the basic version of which is available for the relatively low price of 23,300 euros. It is undoubtedly the cheapest electric car ever produced on the Old Continent.
Source: Citroën
The first deliveries of the car are expected in the second quarter of 2024, and Citroen aims to present and an even cheaper version of the ë-C3 at €19,990 from 2025.
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“This is a clear response to the Chinese invasion. We need to be able to fight on the same battlefield, especially on the cost front“, commented Citroen CEO Thierry Koskas.
The new car offers mileage of 320 kilometers and is eligible for the €100-a-month EV leasing plan promised by French President Emmanuel Macron.
Source: Citroën
Europe’s biggest mass-market automakers are struggling to produce more affordable electric cars, leaving room for Chinese brands such as BYD, Nio and MG to win customers on the continent, where inflation is squeezing consumers.
We recall that the threat of Chinese competition has prompted the European Commission to launch an investigation into the role of Beijing’s subsidies in the rise of Chinese brands – a move that could have serious consequences for the industry if there is a tariff swap between China and the EU.
As for the ë-C3 model, it could help Stellantis keep up with other European mass-market electric car makers such as Volkswagen AG and Renault SA.
Last week Volkswagen said orders for electric cars for the third quarter fell short of targets. The company has been forced to lay off temporary workers and reduce shifts at its German factories in the past few weeks.
Against this background, the French competitor Renault plans to cut production costs by up to 40% for its new electric carsalthough it delayed the plan until next year due to lagging demand for its Megane E-Tech, Tesla’s price cuts and unfavorable market conditions.
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2023-10-18 10:03:57
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