Beijing (ZXZC)- On January 12, Tesla's official Chinese website showed significant price cuts for the Model 3 and Model Y, which also stand as the US electric vehicle maker’s inaugural price adjustments for the year 2024.

Model 3; photo credit: Tesla

Specifically, the starting price for the revamped version of the Model 3 has been reduced to 245,900 yuan, marking a substantial decrease of 15,500 yuan compared to the previous price of 261,400 yuan. Similarly, the Model Y now starts at 258,900 yuan, seeing a price drop of 7,500 yuan.

This move follows Tesla's initiation of a pricing battle at the beginning of last year, setting off a year-long price competition within China’s new energy vehicle industry. At that time, Tesla's two domestically produced models underwent significant price reductions, with the Model 3 Rear-Wheel-Drive version seeing a direct price cut of 36,000 yuan, reaching a starting price of 229,900 yuan. The Model Y Long Range version experienced an even more substantial reduction of 48,000 yuan. After these adjustments, Tesla set a new historical low for new car prices in the country.

In addition to these reductions, Tesla China had previously made several upward adjustments to the prices of both the Model 3 and Model Y in the past year, although the increases were relatively modest.

According to data from the China Passenger Car Association (CPCA), in 2023, Tesla China ranked second with a market share of 7.8% on the list of new energy vehicle makers by annual retail sales, with a total retail volume of 603,664 units, which surged 37.3% year on year. Notably, BYD claimed the top spot with 2,706,075 vehicles retailed, indicating a robust 50.3% leap from a year ago, which also accounted for a significant 35% market share.