A few months ago, the American Tesla optimized its Gigafactory in Shanghai, which immediately enabled the group to produce nearly 80,000 Model Y and Model 3 the following month, an absolute record. However, if the activity of the American manufacturer is very strong in China, the latter faces fierce competition from local players, with in particular the Chinese brand BYD, which posted more than 175,000 sales in August. Also, Tesla made a decision that was surprising to say the least, and far from being in line with what is happening elsewhere…
Tesla struggling in China with local competition
Indeed, Tesla has been battered in China for a few months now by local competition, which not only has fun offering vehicles very largely inspired by those of the American manufacturer, but also displaying prices much lower than those charged by Tesla. .
Also, in order to stay in the race, Tesla has decided to lower the prices of its Model 3 and Y in China by up to 9%. The small American electric sedan thus sees its selling price drop from 279,900 yuan to 265,900 yuan, or around 37,000 euros. For its part, the Model Y sees its price drop from 316,900 yuan to 288,900 yuan, or 40,000 euros.
For comparison, a few months ago the little Tesla Model 3 exceeded the 50,000 euro mark in France. At the end of October, the electric sedan is displayed from 53,490 euros with us, and this could increase further.
According to Tesla, this price adjustment in China was calculated based on raw material costs. A decision that could quickly lead to a “price war” according to CMBI analyst Shi Ji. Indeed, it is likely that other manufacturers, taking the example of Tesla, will in turn decide to reduce their prices, anticipating in passing an increase in the volume of production next year.
A Chinese competition which will come to attack Tesla also outside its native land, like the BYD group, still unknown in Europe, but which is preparing a vast offensive. Present at the recent Paris Motor Show, the Chinese group founded in 1995 first distinguished itself on the battery market, before launching into the electric car in 2003. The manufacturer could launch various models in France in 2023. It remains to be seen know now if the prices will be attractive enough to attract the many motorists who are eyeing the electric car, but whose price curbs the enthusiasm…