Ford Answers Tesla's Lower-Priced Model Y With Mach-E Variant That Also Qualifies For Subsidies In China

Ford Motor Co F has added another variant of its all-electric sports utility vehicle Mustang Mach-E in China for under RMB 300,000 ($46,000), thus qualifying it for state-led subsidies, the company announced on Saturday.

What Happened: The Detroit-based automaker has started accepting bookings for the new long-range rear-drive version RMB 282,000 ($43,500) after subsidies.

The new variant is priced above a previously announced standard range rear-wheel-drive version that is priced at RMB 265,000 ($40,899).

Ford now has two Mach-E variants among five that qualify for the subsidies.

The automaker said it added a second model that qualifies for a subsidy after listening to user needs. The latest addition will have an increased range of 105 kilometers (65.24 miles), the company said.

Only vehicles priced below RMB 300,000 are eligible for the new energy vehicle subsidy in China. 

See Also: Tesla Introduces Lower-Priced Model Y In China That Would Qualify For Subsidies

Why It Matters: Tesla Inc’s TSLA locally-built, more affordable variant of electric mid-size SUV Model Y in China, which qualifies for a subsidy as well, is reportedly receiving a flood of orders after the Elon Musk-led company introduced it earlier this month.

The locally-built Model Y standard variant in China is sold under RMB 300,000 ($46,000) and is expected to begin deliveries in August.

Chinese rival Nio Inc NIO sells the six-seater and seven-seater ES8 SUV, five-seater ES6s and five-seater EC6 coupe models, which are more expensive and not eligible for the subsidies as they are all priced over the RMB 300,000 limit.

See Also: Nio Posts Record Monthly-Deliveries In June As High Demand Overshadows Chip Shortage, Sees 116% Surge

Price Action: Ford shares closed 2.86% lower at $13.61 on Friday.

Click here to check out Benzinga's EV Hub for the latest electric vehicles news.

Photo: Courtesy of Ford

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: NewsEventsTechChinaelectric vehiclesEVs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!