Advertisement

Updated January 18th, 2024 at 13:05 IST

Tesla cuts Model Y prices in Germany

The price cuts are part of Tesla's strategy to maintain its position in the competitive EV market.

Business Desk
Tesla
Tesla | Image:Unsplash
Advertisement

Tesla's EV price cut: Tesla has implemented price reductions for its Model Y vehicles in Germany, responding to heightened competition from Volkswagen, which overtook Tesla as Germany's leading electric vehicle (EV) seller in 2023. The price cuts are part of Tesla's strategy to maintain its position in the competitive EV market.

The Model Y Long Range and Model Y Performance prices were reduced by 5,000 euros each, now priced at 49,990 euros and 55,990 euros, marking discounts of 9 per cent and 8.1 per cent, respectively. Additionally, the Model Y rear-wheel drive models saw a price reduction of 1,900 euros, a 4.2 per cent decrease to 42,990 euros.

Advertisement

Tesla's strategic move

In 2023, Volkswagen claimed the top spot in EV sales in Germany, securing a 13.5 per cent market share, surpassing Tesla's 12.1 per cent, according to data from the German federal motor authority KBA. This price adjustment by Tesla is seen as a strategic move to regain its competitive edge and maintain market share.

Advertisement

Tesla's price reduction follows its recent decision to halt most car production at its Berlin factory due to disruptions in the supply chain caused by attacks on vessels in the Red Sea. The company aims to resume production on February 11.

The move also aligns with a broader trend in the EV market, with manufacturers engaging in a discount race in China, the world's largest car market. The German government's early termination of the electric vehicle subsidy programme last month added further pressure on local carmakers, challenging their ability to match the pricing strategies of Chinese and US competitors. As EV competition intensifies globally, price adjustments are becoming a key factor for automakers seeking to maintain their market positions.

Advertisement

(with Reuters inputs)

Advertisement

Published January 18th, 2024 at 13:05 IST

Your Voice. Now Direct.

Send us your views, we’ll publish them. This section is moderated.

Advertisement
Advertisement
Whatsapp logo