Model 3 priced at 64.34 million KRW... Reduced by 6 million KRW
Model Y lowered to 84.99 million and 94.73 million KRW
[Asia Economy Reporter Choi Dae-yeol] Tesla has lowered vehicle prices in South Korea. Following a temporary discount on year-end inventory last year, it has now reduced prices on new cars. This is the first time Tesla has lowered prices in South Korea since February 2021.
As of the 6th, according to Tesla Korea's website, the Model 3 Standard Range Rear-Wheel Drive (RWD) model is priced at 64.34 million KRW, 6 million KRW cheaper than before. The All-Wheel Drive (AWD) model is 88.175 million KRW, also reduced by 6 million KRW.
The price drop is even greater for the Sports Utility Vehicle (SUV). The Model Y Long Range AWD model is priced at 84.999 million KRW, 11.65 million KRW less than before. The Model Y Performance is 94.731 million KRW, down by 10 million KRW. Prices for driving assistance options (Autopilot·FSD) remain unchanged.
This is the first time in over two years that Tesla has lowered prices in South Korea since the reduction made in February 2021 to meet the purchase subsidy cap. At that time, Tesla launched the Model Y in South Korea with a price set at 59.99 million KRW, and the Model 3 was also sold at about 5 million KRW less than before, at 59.99 million KRW (Long Range basis). This was because the government differentiated subsidies based on an electric vehicle price threshold of 60 million KRW.
Since then, prices have steadily increased. The Model 3 Long Range at one point rose nearly 15 million KRW compared to its lowest price. The Model Y Long Range increased by more than 26 million KRW in less than two years. Unlike typical automakers who raise prices when launching completely redesigned or facelifted models or adding features during model year changes, Tesla frequently raised prices based on supply and demand conditions, leading to criticism such as being called 'market price gouging.'
Prices have also been lowered overseas. In China, prices were reduced by between 20,000 yuan (approximately 3.7 million KRW) and up to 48,000 yuan (approximately 8.8 million KRW) depending on the model. Following the year-end temporary discount last year, subsidies under the name of insurance and delivery fees are also being provided until early this year. China is the world's largest electric vehicle market, where local brands release various electric vehicles, intensifying competition.
This appears to be a measure to prepare for weakening demand. According to new registration data from Kaizyu, Tesla sold 14,571 units in South Korea last year, about 18% less than the 17,828 units sold a year earlier. Until just last year, customers had to wait several months after ordering, but with rising interest rates and other factors increasing the burden of purchase, demand for new cars is rapidly declining.
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