SHANGHAI (Reuters) – Tesla cut car prices in China for the second time in less than three months, fueling a price war amid a deteriorating demand outlook in the world’s biggest auto market.
The latest cuts, along with October cuts and various incentives of up to 10,000 yuan offered to Chinese buyers over the past three months, equate to a 13 to 24 percent drop in Tesla’s price compared to September, according to calculations. of Reuters. The US electric vehicle (EV) maker cut prices for all versions of its Model 3 and Model Y vehicles in China by between 6% and 13.5%, according to Reuters calculations based on prices displayed on its website. The starting price of the Model 3, for example, has been reduced to 229,900 yuan ($33,427) from 265,900 yuan.
“Tesla’s price adjustment is supported by many engineering innovations,” Grace Tao, Tesla’s vice president of external communications in China, wrote on her Weibo account. “They are responding to the government’s call to promote economic development and encourage consumption.”
The move comes after December shipments of vehicles made by Tesla in China fell for five months, and just days before the end of Beijing’s subsidy program that helped create the world’s largest electric car market. Declining demand has forced Tesla and its rivals to take responsibility for this decision.
China Merchants Bank International (CMBI), which warned in July that China’s EV industry was headed for a price war, said Tesla’s price cut confirmed its forecast and added that the US company may have to intervene further, especially as competition is increasing with its Chinese. opponents.
(Translated by Alice Schillaci, editing by Stefano Bernabei)