Model Y Singapore Price 2.6 Times That of China... Korea 77% Higher Than China
Tesla Explains "Due to Differences in Tariffs, Registration Fees, etc. by Country"
[Asia Economy Reporter Kim Junran] Tesla vehicle prices vary greatly by country, with the price difference between the cheapest and the most expensive countries exceeding 2.5 times.
On the 27th (local time), Bloomberg surveyed the country-specific prices of the Model Y on Tesla's website and found that the vehicle price in Singapore was 142,471 Singapore dollars (approximately 138.61 million KRW), making it the most expensive in the world. In particular, the total purchase cost of the Model Y, including automobile consumption tax and registration fees, reached about twice the vehicle price.
In China, after a price reduction last month, the Tesla Model Y price was surveyed at 288,900 yuan (approximately 53.62 million KRW), slightly more than half of the retail price in the United States. This is the lowest price level worldwide. Tesla's price in Singapore is 2.55 times that of China.
Bloomberg explained that in the city-state of Singapore, vehicle ownership is restricted, so the cost of purchasing a Tesla is almost equivalent to the cost of buying an apartment. In Singapore, to obtain a vehicle ownership permit valid for only 10 years, one must participate in a permit auction held twice a month. In November, the permit price for Tesla reached a record high of 116,577 Singapore dollars (approximately 113.47 million KRW), which was similar to the vehicle price.
However, in China, the world's largest electric vehicle market, competition with local electric vehicle manufacturers is fierce, showing a completely different pattern from Singapore. In the Chinese electric vehicle market, from early this year to July, Chinese companies such as BYD accounted for nearly 80% of total sales. Accordingly, Tesla lowered vehicle prices last month in China and increased support such as expanding insurance premium subsidies for new car buyers.
Meanwhile, the price of the Model Y in Korea was $71,475 (approximately 95.67 million KRW), ranking sixth highest among the 42 countries surveyed by Bloomberg, about 76.9% higher than in China.
In the financial industry, there is speculation that additional price cuts are possible in major Tesla markets such as the United States and Europe. Financial information firm Morningstar predicted, "If the economy slows down next year, raw material prices will fall, reducing input costs," and "automakers, including Tesla, will lower prices to increase demand." Earlier, Tesla CEO Elon Musk also made a similar forecast earlier this year.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
