Tesla's China-made Model 3 prices rise after EV subsidies cut
U.S. electric vehicle maker Tesla Inc's prices for two China-made Model 3 variants rose after authorities cut subsidies in the world's biggest auto market.
China cut subsidies on electric vehicles by 10% this year, effective April 23, but there will be a three-month transition period.
After the adjustment, the starting price for the Shanghai-made Standard Range Model 3 sedans will rise to 303,550 yuan ($42,900) from 299,050 yuan, while Long Range Model 3 cars, which Tesla plans to roll out from June this year, will be priced at 344,050 yuan versus 339,050 yuan, a company website showed.
Prices for those models before subsidies remain unchanged.
Tesla, which started delivering cars from its $2 billion Shanghai factory last year, saw its China registrations rise to 12,709 units in March from 2,314 in February.
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The subsidies will apply only to passenger cars costing less than 300,000 yuan ($42,376) after the transition period. China will also in principle cut subsidies by 20% in 2021 and 30% in 2022.
Hit by the coronavirus epidemic, China's overall car sales fell 42% in the first three months compared with a year earlier. But the auto industry expects sales to recover as the government promises more supportive policies to boost consumption.