Tesla is reportedly set to increase the price of its popular Model Y crossover in China, a move that deviates from the ongoing price competition in the market.
According to a report from local media outlet Cailian, Tesla will raise prices in China on April 1, with the Model Y’s price set to increase by RMB 5,000 yuan ($700), citing sources within Tesla China.
The current RMB 8,000 insurance subsidy and up to RMB 10,000 reduction in paint costs for stock vehicles will expire on March 31, the report noted. This impending price hike means that the actual cost for consumers to purchase a Model Y could rise by as much as RMB 23,000.
Tesla’s factory in Shanghai produces both the Model 3 and Model Y. Following the last price adjustment on January 12, the Model 3 starts at RMB 245,900 and the Model Y at RMB 258,900 in China.
Chinese customers can currently benefit from a discount of up to RMB 34,600 if they purchase and take delivery of a Model 3 or Model Y inventory car by the end of March. This includes an RMB 8,000 insurance subsidy, discounts on paid car paint, and a discounted loan rate.
On March 16, Tesla announced price increases for the Model Y in North America and Europe, with prices set to rise by $1,000 and ā¬2,000 starting April 1, respectively.
This reported price hike in China seems to align with Tesla’s overseas price adjustments, although it is a rare move amidst the ongoing price competition in the Chinese market.
The early disclosure of this information appears to be a strategic move to encourage potential customers who are still waiting to place their orders, a tactic Tesla has used in the past.
Tesla had previously reduced prices for both versions of the Model 3 in China by nearly 6 percent on January 12, and for two out of three versions of the Model Y by as much as 3 percent, amidst intense price competition.
The Model 3 is currently available in two versions in China — an entry-level rear-wheel drive version and a dual-motor, all-wheel drive, long-range version — with starting prices of RMB 245,900 and RMB 285,900, respectively.
