Jaecoo Confident J5 EV Price is Normal, Not a Price War Strategy

KatadataOTO – Jaecoo Indonesia has finally announced the price of the J5 EV. The electric car is priced very competitively in the country.

The lowest variant is sold starting from Rp 249.9 million. Meanwhile, the highest type is offered at Rp 299.9 million.

According to the Chinese brand, there are several reasons why they set the price of the Jaecoo J5 EV at that level.

“We want to build trust first, so we are giving the best price we possibly can,” said Zheng Shuo, President Director of Chery Group in Jakarta, on Monday (03/11).

Photo : KatadataOTO

Shuo dismissed the notion that Jaecoo is implementing a price war strategy to market their new Electric Vehicle (EV).

Because the Jaecoo J5 EV offers many advantages compared to its rivals. Therefore, the offered price is considered appropriate.

He also advised prospective buyers to take a test drive first and see Jaecoo's new electric car.

So that consumers can directly experience the quality of the Jaecoo J5 EV. And then choose this product for their mobility needs.

“So consumers will be interested, as I see it, there is no price war. Our products each have their own positioning,” he continued.

He is also optimistic that the Jaecoo J5 EV will be well-received by the public in Indonesia. So it can achieve success like the other products.

Price Wars Cause Consumer Trust to Decline

As a reminder, a price war is one way to attract more consumers. Because it is considered effective for tempting the public.

However, this method does not always have a positive impact. Especially for the targeted consumers.

“Regarding price wars, from a consumer's point of view, it can indeed be contradictory,” said Josua Pardede, Chief Economist of Permata Bank to KatadataOTO some time ago.

According to Josua, the price war implemented by electric car manufacturers can indeed benefit consumers at first.

However, if this is done in the long term, it is predicted that it will push manufacturers to make adjustments. Such as cutting features and the quality of their products.

Photo : KatadataOTO

“This is to maintain margins and reduce the resale value because the price of (new cars) in the market becomes depressed,” continued Josua.

If a decrease in quality or features occurs for the sake of slashing new car prices, then consumers will certainly feel disadvantaged.

Considering the resale value depreciation of four-wheeled vehicles already purchased by the public becomes faster.