The American Tesla has been forced to lower its prices in China as a result of fiercer competition. The prices of electric cars have been cut by about 5 percent, the group announced.
China is one of the most important markets for Tesla. However, Americans are increasingly bothered by Chinese electric car manufacturers, such as BYD. That company sold a record number of cars of, more than 200,000 units in China last month. In addition, several manufacturers have been added, such as Nio and Xpeng. They are working hard to bring more and more models onto the market.
Chinese manufacturers accounted for 80 percent of domestic electric vehicle sales in the year’s first seven months.
Tesla’s price cuts include the popular Model 3 and Model Y SUV. “Competition among electric car manufacturers is very fierce this year. That is why Tesla has decided to deal a blow to its competitors with this price reduction,” said a market expert at a Shanghai consultancy.
Earlier this year, Tesla made price increases in China. In addition, the group has recently expanded the production capacity of its factory in Shanghai. As a result, about 1 million Teslas can roll off the production line there every year.