Tuesday, August 9, 2016

Tesla Motors Inc Model 3 Customers Being Lured to BMW via New Ad

After the Model 3 unveiled in April, Nissan Motor Co. openly attacked Tesla Motors Inc. on the reservation process of its compact sedan, the Model 3, through its new ad campaign. Now, BMW AG is trying to attract the Model 3 reservation holders via its new commercial.

Electrek reported that the German luxury carmaker released a 30-second video commercial for its plug-in hybrid 3 Series, dubbed as “BMW 330e,” urging Model 3 customers that they should not have to wait so long for a vehicle. The commercial attracts them to purchase its new hybrid merely because it is available now.

The Model 3 is expected to launch late 2017 in the US and in 2018 in the rest of the world, if everything goes as planned, which implies a wait time of at least two new years for reservation holders as mentioned in the video. This, along with “that other electric car company’s new model ever even arrives” clearly referred to Tesla’s Model 3 and implied that BMW now considers itself an EV maker too.

Given Tesla’s history with the Model S and the Model X, the market’s skepticism on timely launch of the Model 3 appears reasonable. However, directly advertising that it will be delayed by stating “and maybe more” seems like a direct attack on the Californian EV maker.

The Model 3 base-version has an estimated EPA-range of over 215 miles and a tag price of $35,000 (excluding incentives). Conversely, the BMW 330e has a 14 mile-range on electric and costs $44,000. Perhaps the German automaker fears that its all-electric 3 Series, the Model 3’s real competitor, will not hit the roads before 2020.

With over 373,000 reservations, Model 3 customers are unlikely to purchase another vehicle over the next few years. Thus, it is understandable why BMW and Nissan are using cheap ads to attract those people. However, the company should consider that while availability could be one of the major factors considered while buying an electric vehicle, it is certainly not the only one.

Interestingly, BMW has started a new campaign dubbed “wait or drive” under which it released an ad which includes a dummy Tesla Supercharger. The video below talks about waiting in lines to pay a deposit and waiting for a vehicle to arrive, which is another direct attack on the Model 3.

LAX Car Service - MGCLS