BEIJING — Prices for Tesla Inc.’s two China-made model 3 variants rose after government authorities cut subsidies in the world’s biggest auto market.
China cut subsidies on electric vehicles by 10 percent this year, effective April 23, but there will be a three-month transition period.
After the adjustment, the starting price for the company’s 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 starting in June, 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 China registrations rise to 12,709 in March from 2,314 in February.
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 percent in 2021 and 30 percent in 2022.
Hit by the coronavirus epidemic, China’s overall car sales fell 42 percent 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.