Tesla reduced prices for its electric cars in China exceeding BYD Han series sedan in 2023, reveals market analyst.
US-based firm JL Warren Capital revealed that Tesla cut down prices of its Model 3 by 6% compared to December last year. On the other hand, Model Y prices reduced by 11%.
Compared to Tesla, BYD Han only reduced prices by 5% during the same timeline.
BYD Han sells cars above 200,000 yuan ($28,000) and other of its offerings are even less than this price tag. It is the only car maker that is giving fierce competition to its US-based rival.
In contrast, BYD increased its sales promotions through 2023 and reduced 10% or 17% from some of the models.
“Double-digit discounts are a common promotion practice to stimulate sell-through and meet the sales target,” said JL Warren Capital CEO and Head of Research Junheng Li.
Nio, a flagship electric car maker also participated in the price reduction war earlier this year as it failed to avoid this industry-wide competition.
It is expected that the market penetration rate will be around 40% next year and a slowdown from a 35% increase in 2023.
Back in October, the China Passenger Car Association (CPCA) reported that the Chinese car industry would record a sales boom between October and December.
This boom will be led by BYD and Li Auto to smash monthly delivery records while achieving a full-year growth target of 8.5 million EVs.
BYD reported sales of 301,903 new energy vehicles in November. Meanwhile, Tesla led with 435,059 EVs in the third quarter.
(source – CNBC)