Updated March 1st, 2024 at 11:00 IST

Tesla introduces new incentives in China amid escalating price war

The incentives include an 8,000 yuan discount on car insurance products via partnerships with Tesla.

Reported by: Business Desk
Tesla | Image:X Photo

Tesla’s fresh incentives: Tesla has rolled out fresh incentives, including insurance subsidies, in an effort to attract consumers in the world's largest auto market, where the US electric vehicle (EV) giant finds itself in a heated price competition against established rivals like BYD.

According to a post on Tesla's Weibo account on Friday, customers who pick up existing inventories of Model 3 sedans and Model Y SUVs by the end of March stand to receive up to 34,600 yuan ($4,807.76) worth of incentives.


The incentives include an 8,000 yuan discount on car insurance products through partnerships with Tesla, as well as a 10,000 yuan discount for selecting a change of paint colour. 

Additionally, Tesla is offering limited-time preferential financing plans that could result in savings of up to 16,600 yuan for Model Y purchases.


While a sales representative acknowledged that Tesla's inventory in China is limited, specific details were not provided. Tesla did not respond to requests for comment.

Facing a slowdown in demand and increased competition, Tesla had previously reduced prices on certain Model 3 and Model Y cars in China in January. From February 1 onwards, the company also offered cash discounts for select Model Ys.


Meanwhile, Tesla's major local competitor, BYD, recently slashed the starting price of a new version of its Song Pro hybrid SUV by 15.4 per cent.

BYD, which surpassed Tesla as the world's top EV maker in Q4, responded to the competition by offering even larger discounts on various new car models in February.


(With Reuters Inputs)


Published March 1st, 2024 at 10:15 IST