Tesla introduced fresh incentives, including insurance subsidies, on Friday to attract consumers in the world’s largest auto market, where the U.S. electric vehicle giant is engaged in an enduring price battle against established competitors such as BYD.
According to a post on its Weibo account, Tesla stated that customers acquiring existing inventories of Model 3 sedans and Model Y SUVs by the end of March would qualify for a maximum of 34,600 yuan ($4,807.76) worth of incentives.
These incentives comprise an 8,000 yuan discount on car insurance products through partnerships with Tesla and a 10,000 yuan discount for opting for a paint color change.
Additionally, Tesla is offering time-limited preferential financing plans that could result in savings of up to 16,600 yuan for Model Y purchases.
When questioned about Tesla’s inventory levels in China, a sales representative acknowledged that it was limited but refrained from disclosing specifics.
Despite a request for comment, Tesla did not respond.
In response to diminishing demand and escalating competition, Tesla reduced prices on select Model 3 and Model Y vehicles in China in January and began offering cash discounts for certain Model Ys starting February 1st.
Meanwhile, its primary local competitor, BYD, lowered the starting price of a new iteration of its Song Pro hybrid SUV by 15.4% on Friday.
Having overtaken Tesla as the world’s leading EV manufacturer in the fourth quarter, BYD responded to Tesla’s moves with even more substantial discounts on various new car models in February.
Geely Auto, BYD’s principal domestic rival, likewise slashed the starting prices for its popular Galaxy L6 and L7 models by 15% and 9%, respectively, on Friday.
