According to its Chinese website on Friday, Tesla lowered prices for all Model 3 and Model Y models in China by up to 13.5% after December deliveries of vehicles made in China reached a five-month low.
Reuters calculations based on the prices displayed on the website indicate that the American automaker reduced the prices for the models by 6% to 13.5%.
According to the website, the starting price for the Model 3 decreased from 265,900 yuan to 229,900 yuan ($33,427.84), and the price for the Model Y decreased from 288,900 yuan to 259,900 yuan.
The action came after a price cut by Tesla that saw those models’ prices drop by up to 9% in October. Since September, the company has been providing incentives to Chinese customers in the amount of 10,000 yuan.
As demand declines in the biggest market in the world, China’s decision to end a more than the ten-year-old subsidy for the purchase of electric vehicles has also compelled automakers, including Tesla, to extend discounts in order to maintain sales.
According to data released by the China Passenger Car Association (CPCA) on Thursday, Tesla delivered 55,796 electric vehicles made in China in December, a drop of 44% from November and a reduction of 21% from a year earlier. This was due to the company reducing output and lowering prices to address rising inventories.
(1) Chinese Yuan = 6.8775