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On Feb. 20, local time, Ford Motor Company announced a reduction in the price of its 2023 Mustang Mach-E models. It is reported that according to the price list sent by the carmaker to the US dealer network, depending on the model, the price of the Mustang Mach-E will be reduced by $3100 to $8100, effective today.

Specifically, the entry-level Mustang Mach-E model has been reduced by $3100 (about 22300 yuan) to $39895; the Premium model has been reduced by $7600 (about 54600 yuan) to $52395; and the top version has been reduced by as much as $8100 (about 58200 yuan) to $48895. In other words, the highest price reduction of the Mustang Mach-E model in the North American market is nearly 60, 000 yuan.

As for the reason for the price reduction, it may be related to the poor performance of the car market. Sales of the Mustang Mach-E in North America fell 51 per cent year-on-year to 1295 in January, according to the data. In addition, it is also reported that the price of the car is reduced to adapt to changes in the market. On January 1 this year, the US Treasury Department's request for a new battery credit for electric vehicles officially came into effect. As the US Treasury's subsidy expired, the tax credit available to Mustang Mach-E was reduced from US $7500 to US $3750, while other models lost the tax credit.

In the auto market, Mustang Mach-E mainly competes with Tesla Model Y. Mustang Mach-E price reduction is not only related to poor sales, but also affected by Tesla's price reduction.

The prices of the Model Y rear-wheel drive model and long-range all-wheel drive model were cut by $1000 to $42990 and $47990, respectively, down 2.3 per cent and 2 per cent from previous prices, according to Tesla's US website. Prices will rise by $1000 or more from March 1, according to the official website. Prior to this, Tesla announced a price increase on February 4, when he raised the price of the long-term Model 3 to $46990, compared with the original price of $45990.

Ford Mustang Mach-E is the first pure electric model of Ford Electric vehicle Division in the Chinese market. It was sold in China on April 23, 2021 and produced by Changan Ford. The current price range is 26.50-379900 yuan, which mainly competes with Tesla Model Y in the domestic market. But the sales performance of the car lags far behind that of Tesla Model Y. Retail data show that Ford Electric Horse sold 2062 vehicles in 2023, compared with 56 in January this year. For comparison, Tesla Model Y2023 sold 456394 vehicles, compared with 29912 in January this year.

In order to compete with Chinese automakers, Ford CEO Jim Farley has said that it is willing to work with other carmakers to reduce costs and enhance its competitiveness in the battery sector. In addition, Ford is scaling back its production targets for electric vehicles and stepping up the development of hybrid models, followed by a smaller, cheaper electric vehicle.

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