The American electric vehicle manufacturer Tesla, led by billionaire Elon Musk, has launched its largest discount package for the Model 3 in China. The goal of this strategy is to revive sales in a market that has experienced a sluggish start to the year due to a prolonged price war in the sector.
Starting February 5, Tesla is offering an insurance subsidy of around $1,100 and a five-year interest-free financing plan, marking the first time the company combines both incentives. This will reduce the starting price of the rear-wheel-drive Model 3 in China to about $31,200.
Additionally, buyers will benefit from special charging programs for their vehicles and will have access to other public subsidies and Tesla offers valued at up to $8,000. Other brands such as Xpeng, Nio, IM Motors, and the joint venture between China's GAC and Toyota have also announced similar financing and discount plans for their models.
According to industry reports cited by Yicai, sales at dealerships of leading brands fell by more than 40% year-on-year in January, primarily due to the proximity of the high season in December and the slowdown during the Lunar New Year in China. Cui Dongshu, secretary-general of the CPCA industry association, pointed out that fierce competition in the Chinese automotive market will keep the price war ongoing throughout this year, although sales could increase thanks to initiatives like the renewed government-driven plan.
