Tesla Introduces New Incentives for Model 3 and Model Y Buyers in China Amid EV Market Competition.
Tesla (NASDAQ: TSLA) has initiated a fresh round of incentives, including insurance subsidies, for customers in China, intensifying the ongoing competition within the electric vehicle (EV) sector.
Customers in China who take delivery of a pre-produced Model 3 or Model Y before the end of March are eligible for benefits totaling up to RMB 34,600 yuan ($4,810), as announced by Tesla on Weibo today.
This offer, exclusive to pre-produced Model 3s and Model Ys, aims to attract customers amidst the competitive landscape. Notably, Tesla’s Shanghai factory, responsible for producing these models, has seen recent price adjustments, with the Model 3 now starting at RMB 245,900 and the Model Y at RMB 258,900.
Effective immediately, Chinese customers who take delivery on or before March 31 can benefit from an RMB 8,000 insurance subsidy, effectively reducing the starting prices of the Model 3 and Model Y to RMB 237,900 and RMB 250,900, respectively.
Furthermore, customers purchasing pre-produced Model 3s or Model Ys will also have the option to avail select body paint for RMB 2,000, saving up to RMB 10,000. Additionally, Tesla offers annual loan rates as low as 1.99 percent, translating to a starting annualized interest rate of 3.65 percent.
Tesla’s strategic moves align with the heightened competition in China’s EV market. BYD’s recent launches, including the Qin Plus Glory Edition and the Chaser 05 Glory Edition at reduced prices, have ignited a new price war in the EV sector after the Chinese New Year holiday. Moreover, BYD’s updated versions of the Han and Tang models further escalate the competition into the mid- to high-end EV market segment. Alongside these updates, BYD has also lowered prices on other models, including the Dolphin, Song Plus, and Seal DM-i.
($1 = RMB 7.1887)
