DETROIT: Just weeks after market leader Tesla took similar action, Ford is slashing prices on its Mustang Mach-E electric SUV by as much as $6,000.

The Detroit automaker announced on Monday that it is increasing Mach-E production this year and lowering prices across the board by utilizing streamlined costs.

The price reduction comes just over two weeks after Tesla Inc. reduced prices by anywhere from 6% to almost 20% on the majority of its models in the US in an effort to boost demand and increase market share.

According to Jeff Schuster, president of global forecasting for LMC Automotive, a Detroit-area consulting firm, Ford's move will almost certainly force other automakers to cut prices as well, igniting a small price war for electric vehicles.

Anyone who wants to compete in this market will need to respond if they want to maintain price competitiveness with consumers, he said.

Schuster claims he does not anticipate a full-fledged price war that drives down prices even further. As their share of the American market continues to increase, he predicted that automakers would work to maintain EV profit margins.

Ford said in a statement that the price reductions are a part of its strategy to keep the SUV competitive in a market that is rapidly evolving, but the Dearborn, Michigan-based company omitted any mention of Tesla.

Marin Gjaja, Chief Customer Officer of Ford Model e, the company's electric vehicle division, declared, "We are not going to cede ground to anyone."

A base rear-wheel-drive Mach-E with a standard range will cost $900 less, or $45,995 than it did previously. From $69,895 to $63,995, the top end of the GT extended range will decrease by $5,900. Taxes, fees, and shipping are not included in the prices.

On January 13, Tesla Inc. drastically reduced the cost of a number of its electric car models, making some of them eligible for a new federal tax credit that might help increase consumer interest.

For some versions of the Model Y SUV, which is its best-selling product, the company reduced prices in the United States by almost 20%. More Model Y models will now qualify for the $7,500 electric vehicle tax credit, which will be offered through March, thanks to that reduction. Additionally, Tesla decreased the base price of its least expensive model, the Model 3, by about 6%.

The reductions were made in response to waning demand and a falling stock price for Tesla. Elon Musk, the company's CEO, predicted that they would result in higher sales, with 1.8 million vehicles delivered this year—a 40% increase from 2022.

Ford claimed that its price reductions are intended to increase the Mach-attractiveness E's to EV buyers and expand the company's EV market share.

Nissan, which competes with the Ariya and Leaf in the mainstream U.S. market, said it has no immediate plans to alter prices. The vice president of communications, Brian Brockman, stated, "Of course, we're watching what's going on."

The Chevrolet brand of General Motors, which will have four EV model lines available for purchase by the end of this year, said it had no upcoming price announcements.

Two other significant rivals in the mainstream EV market, Hyundai and Kia, were contacted for comment on Monday. Many raw materials used in the auto industry are becoming less expensive, which will enable businesses to reduce prices, according to Schuster. According to him, shipping fees for parts have also decreased.

Tesla started the price reductions, which differ from previous attempts by the auto industry to boost sales by maintaining the price while providing discounts, according to Schuster. He claimed that the cuts are making headlines and will draw customers inside to take a look.

Additionally, he added, they will probably persist longer than spot discounts. In the late summer, Schuster predicted that "you're not likely to see the price increase in a month, or two months, or six months, at least before the next model year."

Customers who have ordered Mach Es and are waiting for delivery, according to Ford, will automatically receive the lower prices. The business will get in touch directly with those who already own cars with a sale date after January 1.