2023-10-28 13:00:07
Nicolas Monnot, price and performance director at Citroën, during the press presentation of the new ë-C3, in Meudon (Hauts-de-Seine), near Paris, October 17, 2023. ABDUL SABOOR / REUTERS
By slashing the prices of the ë-C3, the all-electric version of its city car expected in spring 2024, Citroën is finally endorsing its positioning, hitherto poorly assumed, as a popular manufacturer with a small model which will start at 23,300 euros, before deduction bonus of 5,000 euros. This announcement comes as the arrival of many entry-level electric vehicles looms, a sign that the European automobile industry is beginning to realize that it is no longer possible to continue to sell only expensive electric cars.
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While Tesla’s Model Y (45,000 euros) is at the top of sales in Europe and around the world, more affordable models – without being cheap – will multiply in the coming months. The Renault 5 is expected in the second half of 2024, but its autonomy and its level of equipment suggest a price closer to 30,000 euros than 25,000… which may need to be revised downwards given the competition from Stellantis (to which Citroën belongs).
In addition to the ë-C3, which will be manufactured in Trnava, Slovakia, the Stellantis group will also offer an affordable model from Opel as well as from Fiat, which is preparing an electric Panda. In a little over a year, Citroën even plans to drive the point home with a version of the ë-C3 at 19,900 euros. On the Korean side, Hyundai will launch a small vehicle derived from the Casper, and Kia is considering an EV2, while Volkswagen will market its ID.2 in 2025, also announced at 25,000 euros. At the same time, Tesla will offer a Model 2 at $25,000 (around 23,600 euros).
The slowdown in household demand, hampered by changes in purchasing power, as well as the uncertain outlook for the entire automobile market, pose threats to sales of electric cars. These would find a welcome growth driver with the deployment of less elitist ranges, the diffusion of which could be stimulated through the future “social leasing”, a long-term rental formula from 100 euros per month under conditions of resources envisaged. by the government from the beginning of 2024. A downward expansion of the catalog would be likely, not only to facilitate the democratization of sales of electric vehicles, but also to avoid the risk of suffocation.
Getting ahead of Chinese competition
At present, sales are dynamic and reach 15% of registrations (20% for individuals), but they are dominated by models over 35,000 euros (the price of the Peugeot e-208, long in the lead sales), who are competing for a segment that the price war initiated by Tesla is making unstable. The cheapest proposition on the market today, the Dacia Spring (20,800 euros) presents itself as a predominantly urban model, while the ë-C3 or the R5 are more versatile. And its origin (it is produced in China) will soon deprive it of the ecological bonus which largely contributes to its competitiveness.
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