Tesla lowered the prices of its cars in China, this is the second time in less than three months, thus igniting a price war against the backdrop of the expected slowdown in demand in the world’s largest car market | All versions of Model 3 and Model Y in China fell last Friday by 6%-13.5%
For the second time in less than three months: the electric car manufacturer ‘Tesla’ lowered the prices of its cars in China, thus igniting a price war against the backdrop of the expected slowdown in demand in the world’s largest car market.
According to the Calcalist report, the two price reductions for the Tesla models, along with a host of incentives offered to Chinese buyers in the last three months, led to a 13-24% price drop since September.
“Tesla’s price adjustments are backed by engineering innovation,” Tesla Vice President Grace Tao said in a statement on the Weibo social network. “They answered the government’s call to promote economic development and encourage consumption.”
Last Friday, the company lowered the prices of all versions of the Model 3 and Model Y in China by 6%-13.5%. For example, the starting price for the Model 3 has been lowered to 229,900 yuan ($33,427) from 265,900 yuan. The prices of these models in China are now 24% and 32% lower than their price in the US, Tesla’s largest market – according to Reuters calculations. The reasons for this are related to different materials and differences in labor costs.
Calcalist explained that the move comes after shipments of cars manufactured in China fell in December to their lowest level in five months, and is launched a few days after the Chinese government ended a subsidy program for electric cars.