Tesla has introduced new incentives in China as part of its strategy to compete in the country’s booming electric vehicle market, where it faces tough competition from established players like BYD.
The incentives, announced on Friday via Tesla’s Weibo account, aim to attract customers interested in purchasing existing inventory of Model 3 sedans and Model Y SUVs before the end of March.
According to Tesla’s Weibo post, customers can avail themselves of incentives worth up to 34,600 yuan ($4,807.76).
These incentives include an 8,000 yuan discount on car insurance products through partnerships with Tesla and a 10,000 yuan discount for selecting a different paint color. Tesla is offering limited-time preferential financing plans that could result in savings of up to 16,600 yuan for Model Y purchases.
Despite inquiries about Tesla’s current inventory levels in China, sales representatives declined to provide specific details, stating only that inventory was limited. Tesla did not respond to requests for further comment.
Facing a slowdown in demand and increased competition, Tesla previously reduced prices on select Model 3 and Model Y vehicles in China in January and offered cash discounts on certain Model Y models starting February 1st.
In response to Tesla’s moves, BYD, one of China’s leading EV manufacturers, recently lowered the starting price of its Song Pro hybrid SUV by 15.4%, intensifying the competition further.
BYD, which surpassed Tesla as the world’s leading EV maker in the fourth quarter, has been aggressively discounting various new car models since February.
Similarly, Geely Auto, another major domestic competitor, recently announced price cuts of 15% and 9% for its popular Galaxy L6 and L7 models, respectively, further escalating the pricing battle in China’s electric vehicle market.
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