Tesla has recently make a strategic move in the Chinese market by reducing the prices of its popular Model Y SUV while simultaneously introducing insurance subsidies for its Model 3 sedan. These developments aim to reinforce the company’s competitive stance and appeal to a broader range of potential customers.
The price adjustments, effective immediately, pertain to both the Model Y Long Range and the Model Y Performance variants, which have seen a reduction of 14,000 yuan ($1,930) in their respective price tags within the Chinese market. As a result, the starting cost of the Model Y Long Range has been adjusted to RMB 299,900 from the previous RMB 313,900, while the Model Y Performance now starts at RMB 349,900, down from RMB 363,900.
Notably, the base model of the Model Y retains its pricing of RMB 263,900, ensuring a diverse array of options for consumers seeking Tesla’s offerings.
See also: Tesla’s Giga Shanghai Reports Production of 80,345 Electric Vehicles in July
Simultaneously, Tesla is introducing a limited-time insurance subsidy valued at RMB 8,000 for individuals purchasing the entry-level rear-wheel-drive version of the Model 3 between August 14 and September 30. To avail of this subsidy, buyers are required to procure car insurance from an insurer associated with Tesla.
The Chinese market is presented with two iterations of the Model 3: the entry version and the Performance version, which maintain their respective starting prices of RMB 231,900 and RMB 331,900 without any alterations in response to these recent developments. It’s worth noting that the insurance subsidy is exclusively applicable to buyers of the entry-level Model 3 and is not extended to customers opting for the Performance version.
The decision to adjust pricing and introduce insurance subsidies comes amidst a backdrop of recent sales figures. According to data released by the China Passenger Car Association (CPCA), Tesla reported sales of 64,285 China-made vehicles in July, encompassing both domestic deliveries and exports. This figure represents the lowest monthly sales total of the year. In terms of domestic deliveries, the CPCA reports that Tesla successfully delivered 31,423 vehicles in China during the same month, with an additional 32,862 units exported from its Shanghai factory.
See also: Tesla China sold 28,217 EVs in July, down 64% from June because production line upgrades
In a broader context, the Model Y has emerged as a standout performer in the Chinese market during the January-May period, with retail sales reaching 152,461 units, reflecting an impressive year-on-year growth rate of 87.03%. This achievement has positioned the Model Y as the leading SUV in terms of sales volume within the country, as indicated by the CPCA’s rankings.
| Drive Form | Previous Price | Latest Price | Change | Change % | |
|---|---|---|---|---|---|
| Model 3 | Rear-wheel Drive | 231,900 | 231,900 | 0 | 0.00% |
| Model 3 Performance | All-wheel Drive | 331,900 | 331,900 | 0 | 0.00% |
| Model Y | Rear-wheel Drive | 263,900 | 263,900 | 0 | 0.00% |
| Model Y Long Range | All-wheel Drive | 313,900 | 299,900 | -14,000 | -4.46% |
| Model Y Performance | All-wheel Drive | 363,900 | 349,900 | -14,000 | -3.85% |
