Tesla China announces price cuts for Model 3 and Model Y vehicles

Prices of Model 3 vehicles in inventory would be reduced by 5,000 yuan (US$745) each, while buyers of the Model Y could enjoy a discount of 10,000 yuan per unit, the US carmaker announced on Monday.

The promotions would run until the end of September, Tesla China said in a statement.

“Tesla has been refraining from cutting prices on its cars while resorting to subsidies for car insurance purchase or interest-free loans to drive up sales in China,” said Eric Han, senior manager at Shanghai consultancy Suolei.

“The discounts it is offering this time are likely to trigger a fresh round of price competition amid weak consumer demand.”

A 5,000 yuan price reduction translates into a 2.1 per cent discount to the 235,500 yuan retail price for a basic Model 3.

An entry-level edition of Model Y, sold at 263,500 yuan, sees a price drop of 3.8 per cent after the 10,000 yuan discount.