Tesla today lowered the prices of all two versions of the Model 3 by nearly 6 percent, and two of the three versions of the Model Y by nearly 3 percent.

Although the Model 3 received its first major update after six years on the market, it has been a limited boost to sales in China, in part due to the sheer number of competing models, giving it no significant advantage.

The Model 3 sold 15,750 units at retail in China in December, contributing 20.78 percent of Tesla's 75,805 sales in the country last month, data compiled by CnEVPost showed.

The electric sedan's sales in China were up 25.61 percent in December from 12,539 units in the same month last year, and up 0.79 percent from 15,627 units in November.

For the full year of 2023, Model 3 retail sales in China were 147,270 units, up 18.33 percent.

The Model Y remains popular in China and is one of the top-selling EVs, though it is also facing a growing number of competitors.

Model Y retail sales in China were 60,055 units in December, up 20.41 percent from 49,877 units in November, and up 104.36 percent from 29,387 units in the same month last year. The SUV contributed 79.22 percent of Tesla's December retail sales in China.

For the full year of 2023, retail sales of the Model Y in China amounted to 456,394 units, up 44.74 percent year-on-year.

Tesla also made a significant price cut on January 6, 2023, which was as high as RMB 48,000 at the time, which became a major trigger for the ensuing fierce price war in China.

($1 = RMB 7.1685)

(Screenshots from Tesla's website on January 12, 2024.)

Automakers' NEV market share in China in 2023: BYD 35%, Tesla 7.8%, Nio 2.1%