Tesla unveiled new incentives on Friday in an effort to attract consumers in China, the world’s largest auto market, where it is engaged in a fierce price war with competitors such as BYD.
The U.S. electric vehicle giant announced that customers purchasing existing inventories of Model 3 sedans and Model Y SUVs by the end of March could receive up to 34,600 yuan ($4,807.76) worth of incentives, according to a post on its Weibo account.
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The incentives include an 8,000 yuan discount on car insurance products through partnerships with Tesla, as well as a 10,000 yuan discount for buyers opting for a change of paint color. Tesla is also offering limited-time preferential financing plans that could save up to 16,600 yuan for purchases of the Model Y.
Facing a slowdown in demand and increasing competition, Tesla previously reduced prices on some Model 3 and Model Y vehicles in China in January, and offered cash discounts on some Model Ys starting February 1st. In response to Tesla’s moves, BYD, which surpassed Tesla as the world’s top EV maker in the fourth quarter, lowered the starting price of a new version of its Song Pro hybrid SUV by 15.4% on Friday.
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BYD further countered Tesla’s actions by offering even larger discounts on a range of new car versions in February. The competition between Tesla and BYD underscores the intense rivalry in China’s electric vehicle market, where companies are vying for dominance and seeking to attract customers with compelling offers and incentives.
