(Bloomberg) – Tesla Inc. has set a price for its long-haul variant of its locally built Model 3 sedans in China that is only 13% higher than its entry-level model. This is a sign that the automaker is setting competitive prices to achieve this, attracting even more consumers to the world’s largest electric vehicle market.
After subsidies from the Chinese government and exemption from purchase tax, the price for the upgraded Model 3 variant starts at 339,050 yuan. For comparison: the imported equivalent was 439,900 yuan. Model 3 with a longer range is to be delivered from June.
The longer-range electric model could help Tesla fend off competition from other global automakers, including Volkswagen AG and BMW AG, as well as local competitors fighting for car sales during the coronavirus pandemic. Registrations of Tesla vehicles in China have declined two months in a row, showing that the US automaker is not immune to the general slump in the auto industry.
Tesla also plans to ship another variant, a locally built Performance Model 3, from the first quarter of 2021. This becomes more expensive from a pre-subsidy price of 419,800 yuan. Final prices are determined at the time of official launch, according to government guidelines, and the product is awaiting government approval.
With the support of local authorities, the Tesla factory in China has recovered from a virus-related standstill faster than many industry competitors. Deliveries by the California-based company in China rose to 10,160 units last month, according to the China Passenger Car Association, although it’s unclear how many of these vehicles were sold to customers, as the number largely reflects the number of cars leaving the factory .
“With local production of long-haul and performance versions, Tesla has completed local production of all of its Model 3 variants in China,” the company said in a statement. “Tesla will move deeper into the Chinese market with a larger version.” Variety of products and services. “
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