Tesla has once again reduced the price of its Model Y in China as sales slipped in July, Reuters reported Monday.
The price of the Model Y Long-Range Model has been reduced by 4.5% to $1,934.58. At the same time, the price of the Performance version was also cut by 3.8% to $48,171. However, the price of the base rear-wheel-drive Model Y remains the same at $36,331, according to the South China Morning Post.
In addition to the price cuts, Tesla is offering more than $1,100 in insurance subsidies to customers in China that purchase an in-stock, entry-level, rear-wheel-drive Model 3 between Aug. 14 and Sept. 30.
Tesla sold 64,285 China-made electric vehicles in July, a 31% drop from June.
The automaker is facing growing competition in China, the world's biggest auto market in 2022, according to registration data from Statista. After Tesla cut prices earlier this year, more than 40 other auto brands in China lowered their prices, including EVs and internal-combustion engine models.
BYD, the world’s largest EV automaker, is among Tesla's biggest competitors in China. While Tesla’s sales fell last month, BYD sold 261,105 vehicles in July, a 61% year-on-year increase, according to Reuters.
In addition, BYD unveiled a new lineup of EVs in April to be marketed under its new Dynasty and Ocean brands, including the BYD Seagull, a compact SUV with a starting price under $11,000, making it a much lower-cost alternative to Tesla’s Model Y or Model 3.
