US electric vehicle maker, Tesla, disclosed that it has raised the price for its revamped Model 3 and Model Y long-range vehicles in the Chinese market, effective 9 November.
The company has decided to raise the price of its Model 3 variant in China by 1,500 yuan ($206), as indicated on its official website and Weibo account.
Over the past week, Tesla’s sales representatives in China have actively engaged on social media, hinting at potential increases in the Model Y’s price.
They have been encouraging consumers to place orders promptly to secure the current pricing before the anticipated adjustments take effect.
Tesla cut the price of its Model S and X cars earlier this year in a bid to boost sales.
In China, the price of the Model S is reduced by 14% to 698,900 yuan ($96,200) and the Model X by 18% to 738,000 yuan. The steep price cuts have also seen the price of the self-driving feature reduced by $3,000 to $12,000.
Tesla has been embroiled in a price war with Chinese competitor BYD for the last several months.
BYD, an auto manufacturer that makes batteries in-house, held the second-largest global EV market share with 16.2% in the first quarter of 2023.
The price war began in January when Tesla cut prices in China, which prompted several auto manufacturers to follow suit to stay competitive.
A ‘truce’ to avoid prices deteriorating was enacted. The pledge was later abandoned on 10 July when The China Association of Auto Manufacturers acknowledged it had violated China’s antitrust laws.
Tesla was accused of ‘reigniting’ the EV price war with a fresh round of price cuts earlier this month. The auto manufacturer discounted two versions of Model Y by 4% or around $1,900.
According to data from research firm GlobalData, EV venture financing deals have boomed in China as domestic manufacturer BYD aims to sell three million vehicles by the end of 2023. Domestic rivals Nio and XPeng are also developing new car models.
China is the global leader in producing EV batteries, thanks to its control over the supply chain and access to raw materials such as lithium and cobalt.
Chinese EV manufacturers also benefit from government subsidies, tax breaks and other incentives.
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