'Tesla's "Price Cut" Sparks Surge in Orders in China'

[Asia Economy Beijing=Special Correspondent Kim Hyunjung] Local media including China’s Yicai reported on the 16th that orders for Tesla vehicles, whose prices have been significantly reduced in China, are surging.

According to the reports, orders for Tesla vehicles with recently lowered prices are increasing nationwide, with some cities seeing a rise of up to 500% compared to December last year. Yicai stated, "After visiting some stores or making inquiries by phone, it was confirmed that order volumes have significantly increased mainly in second- and third-tier cities," adding, "The lowered prices have become attractive to consumers."

Among the 43 markets worldwide where Tesla operates, the prices of Model 3 and Model Y are the lowest in mainland China. Earlier this year, prices were reduced by 36,000 yuan (approximately 6.62 million KRW) per vehicle, making the prices 229,900 yuan and 259,900 yuan respectively.

Yicai further explained, "Tesla has also lowered prices in markets such as the United States, Germany, and Canada," adding, "In some regions and for certain models, the price cuts reach up to 20%."

Orders for Tesla vehicles with reduced prices in China are surging within the country. At the same time, existing owners have expressed dissatisfaction with the sharply lowered vehicle prices in a short period and have protested in front of stores. The photo shows existing Tesla owners protesting in front of a Tesla store in Chengdu, Sichuan, China.
[Image source=Reuters Yonhap News]

Reports of strong Tesla sales in China are being published daily. Recently, it was reported that within three days after Tesla’s price reduction, orders in China reached 30,000 units. However, Tesla has not issued an official response regarding this. Conversely, before the price cuts, some vehicle owners rushed to Tesla stores to protest.

Meanwhile, local Chinese companies have decided to raise prices due to the withdrawal of government subsidies for new energy vehicles. BYD announced that from January 1 this year, their vehicle prices would increase by 2,000 to 6,000 yuan, and Chery New Energy also announced a slight price increase of around 3,000 yuan. Cui Dongshu, Secretary-General of the China Passenger Car Association (CPCA), explained, "With the automotive market sluggish ahead of the Lunar New Year, it is meaningless for other companies to follow price competition," adding, "They will respond by launching new products in February and March and enhancing product competitiveness." He also forecasted, "With the withdrawal of new energy vehicle subsidies and price fluctuations this year, industry competition will become even fiercer."