Tesla cuts prices again in mainland China - PingWest

Tesla cuts prices again in mainland China

Tesla cuts prices again in mainland China

August 14, 2023 10:52 pm

Tesla cuts prices in China again to boost sales amid fierce competition from domestic rivals.

Tesla announced on Weibo on Sunday that it would be cutting prices for two Chinese versions of its Model Y crossover. The Model Y Long Range will now be priced at 299,000 yuan (about $43,000), a reduction of 14,000 yuan (about $2,000). The Model Y Performance will now be priced at 349,000 yuan (about $49,000), a reduction of 14,000 yuan (about $2,000).

The Model 3 will also receive a "limited-time insurance subsidy" of 8,000 yuan (about $1,100). Tesla's post said the insurance subsidy will continue until September 2023.

Tesla cut prices multiple times throughout 2022 and 2023, in an effort to clear out inventory and grow deliveries.

The latest price cuts come as Tesls faces increasing competition from domestic Chinese automakers such as BYD, NIO, and Li Auto.

Tesla delivered 64,285 China-made EVs in July 2023, according to data from the China Passenger Car Association (CPCA). This was a 31% decrease from June 2023.

In comparison, BYD ranked first in July's deliveries, with 262,161 new energy vehicles (NEVs) being sold. NEVs include battery and plug-in hybrid models.

Auto sales fell on weak demand for big-ticket items in China's consumer market. China's passenger vehicle sales contracted for the second consecutive month in July, with deliveries down 2.6% from a year earlier to 1.79 million units, data from the CPCA showed. NEVs continued to be a bright spot, with sales up 31.9% in the past month.

China's EV market is likely to maintain its growth momentum in the near future as the government has recently rolled out a series of measures aimed at strengthening the economy in several sectors, especially supporting the auto industry. Also, in June, Beijing extended tax incentives for EV purchases.

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