After unleashing price war vs rivals in China, Tesla does a U-turn
- Tesla has added additional features to the Model Y electric SUV sold in China.
Tesla initiated a massive price war in China when the US-based company slashed prices of many of its electric vehicles (EVs) earlier this year. The world's largest EV maker wanted a larger share in the world's largest EV market, prompting many rivals - both local and global - to also roll out their respective price cuts. But now, Tesla seems to have done an about turn, increasing the price of its Model Y performance SUV.
Tesla has a sizeable lead over its rivals in the EV game but in China, there is always a palpable threat of the competition erasing the gap. This perceived threat may have prompted Tesla to offer a reduced pricing on many of its EV models earlier this year. The Tesla Model Y Performance cost 363,900 yuan (approximately ₹41.39 lakh) before a price cut saw this fall to 349,900 yuan (approximately ₹39.70 lakh). But now, the price is back up to what it was earlier.
Also check these Vehicles
75 kWh
396 km
Between the time period of the price cut and the price increase - around two months - Tesla has added additional features to the Model Y electric SUV. And many believe that the Elon Musk-led company is now banking on these additional features - and not the pricing itself, to chart the path forward for premium offerings like the Tesla Model Y Performance.
Also Read : Has Tesla lied about drive range? US Department Of Justice probes
China's EV dominance: A golden bird everyone wants
China is not just the world's largest automotive market but also leads in terms of EV sales. Global players compete with a long list of local brands in a field of play where competition is fierce. Tesla may not have had a free run yet but it still plays a very dominant role, followed by the likes of BYD and SAIC-GM-Wuling.
Recent months have however seen the growth trajectory of EVs flatten slightly, raising concerns among official government circles as well as among brands. While companies continue to roll out various ploys and strategies, the Chinese government has also proposed bringing back subsides on EVs priced below a certain figure. It is also planning to ramp up support infrastructure, especially in rural areas of the country, in order to promote EV adoption.
(With inputs from Bloomberg)
Check out Upcoming EV Cars in India, Upcoming EV Bikes in India.
