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Video: Is Chery’s $37,990 driveaway E5 electric SUV still good?

Compiled by ADME Newsroom from 5 sources

First reported by The Driven · 29 September at 12:18 pm

Who's covering this — 5 articles

Motoring press: 2
EV specialists: 1
OEM newsrooms: 1
Broadcast news: 1

Image: The Driven

The quick read

The Chery E5 electric SUV is available at a driveaway price of $37,990, making it one of the more affordable EV options in Australia.
This pricing challenges the traditional premium associated with EVs and may alter buyer perceptions of electrification costs.
The Chery E5's affordability could increase showroom traffic from budget-conscious buyers.
Competitors may need to adjust their pricing strategies in response to the Chery E5's aggressive pricing.

For dealers: The Chery E5's pricing strategy has significant implications for Australian dealers, who must now consider how to maintain profit margins in a market where affordability is a key driver of buyer behavior.

AI-assisted summary of the coverage below — check the original reporting before relying on specifics.

ADME commentary

The ADME angle

The arrival of the Chery E5 electric SUV at a driveaway price of $37,990 sets a new benchmark for affordability in the Australian EV market, directly challenging the pricing strategies of established brands.

This price point is particularly significant because it undercuts many hybrid models, potentially altering the calculus for buyers weighing the benefits of electrification against the higher upfront costs traditionally associated with EVs.

Pricing and Margin Compression

The Chery E5's aggressive pricing will likely force a response from competitors, potentially leading to a margin squeeze for dealers selling other EV and hybrid models, as they may need to reconsider their pricing to remain competitive.

Impact on Showroom Traffic

Dealers can expect an increase in showroom traffic from price-sensitive buyers interested in the Chery E5, presenting an opportunity to educate these customers about the benefits of EV technology and potentially upsell them to higher-margin models.

Competitor Response and Marketing Strategies

To counter the Chery E5's pricing advantage, dealers and OEM marketers should focus on highlighting the unique selling points and value propositions of their own models, such as superior range, performance, or brand prestige, to justify higher price points and maintain profit margins.

Ultimately, the key to success in this evolving market landscape will be the ability to effectively communicate the value of EVs and hybrids to a wider audience, leveraging the interest generated by affordable models like the Chery E5 to drive sales across the range of electrified vehicles.

This week, dealers should review their inventory and pricing strategies to ensure they are well-positioned to compete in a market where affordability is increasingly driving buyer behavior, and consider hosting events or offering test drives to capitalize on the growing interest in EVs.

Go deeper — ADME analysis