New car price war erupts in France, led by Stellantis
Stellantis shifts strategy with deep discounts, sparking a price war in France. Learn how Tesla, Ford, and MG respond, and what it means for buyers.
A new price war has erupted in France, with Stellantis taking the lead. The group has dramatically shifted its strategy, abandoning its high-margin policy and reintroducing aggressive discounts. The most striking example is the Fiat Pandina, which can be purchased for 9,990 euros when trading in an old vehicle. This price point had long seemed unattainable for new cars, but Stellantis has brought it back into four-digit territory, shaking up the market in the process.
The reasons are clear: French sales remain below pre-crisis levels, dealership lots are overflowing, and buyers are postponing purchases. In this environment, the "higher price, fewer sales" strategy has stopped working. Now, Stellantis is betting on volume, which immediately triggered a chain reaction among competitors. Tesla activated its Boost discount, reducing the Model 3's price to 33,090 euros after government incentives. Ford slashed the Explorer's price by nearly 9,000 euros, while the Mach-E saw a reduction of up to 10,000. MG, already focused on affordability, went even further by offering the S5 Long Range starting at 26,990 euros.
Even brands that officially avoid discussing discounts are softening their stance—Renault is offering significant benefits on the Scenic to counter market pressure.
The question now on Spain's mind is whether it will follow France's lead. The situation is similar: weak demand, high price sensitivity among buyers, and substantial inventory. If Stellantis's strategy proves successful, Spain will almost certainly see similar promotions. For buyers, this means a chance to negotiate for real discounts, including on electric vehicles, for the first time in years.