Source: Visual China

Tesla China announced to provide one-time subsidy of RMB6,000 (US$860) for buyers of some models from Wednesday to December 31. According to the company, customers can enjoy the subsidy if they purchase Tesla vehicles currently available in the market and their deliveries to be completed by the end of the year.

This is the second incentive in forms of indirect price cuts for Tesla China in the past week. The company unveiled on December 2 that it would offer insurance subsidy of RMB4,000 for purchases of the current models. Following the two rounds of incentives in December, price of Tesla vehicles sold in China could be reduced by RMB10,000 apiece, and that of the standard version of Model 3 down to RMB255,900, closer to its lowest price on record: RMB235,900.    

Earlier this week, the state-run Xinhua News Agency reported Tesla Shanghai Gigafactory delivered 100,291 vehicles in November, for the first time topping 100,000 units in a month. China’s auto market in November was subdued, but the new energy vehicle (NEV) sector, including the battery electric vehicle and the plug-in hybrid electric vehicle, was booming, partly thanks to the national NEV purchase subsidy policy set to expire on December 31, commented Cui Dongshu, secretary-general of China Passenger Car Association (CPCA).

In October, Tesla China launched its first price cuts since the beginning of the year.  Involving all the versions of Model 3 and Model Y, the cuts saw the Model Y Long Range as version with the biggest adjustment of RMB37,000, or a decline of 9.4%. The move was unsurprised for the industry for Tesla has offered one-time subsidy of RMB8,000 to new Model 3 and Model Y vehicles delivered from September 16 to 30, which was seemed to pay way for its future price cuts.

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