Daily Management Review

Tesla Reduces ‘Model X’s Price In China By ‘$14,000’ Following China’s ‘Imported Tariff’ Reduction Announcement


05/24/2018


Experts think that the price reduction move of imported auto manufacturers in China could gradually “foreshadow” even the domestic car brands.



The company of Tesla cuts down “$14,000” in China for its Model X following the announcement of Beijing for major tariff reduction in “imported automobiles” whereby marking a potential boost in the sales for the firm Tesla being the largest auto manufacturer in the world that played a pivot market role “towards electric cars”.
 
Informing Reuters, a sales representative from Beijing said that Tesla will also bring down prices nearly by 6% for its “Model S and Model X cars”. On Tuesday, May 22, 2018, China announced about reducing “import tariffs” on automobile in a range of 15 to 25%. Although, the change in tariff rates will be effective from July 1 onwards, Tesla has informed on Tuesday that any sale proceeds of its cars in China, even before July 1, will be subjected to the “adjusted prices”.
 
A “top-of-the range Model X” of Tesla will be adjusted to the rate of “1.3 million yuan” remaining “well above the $140,000 cash price-tag” which the savings are being made for the U.S.’s “priciest version” of “Tesla’s Model X P100D”. Tesla’s move mostly “foreshadows wider price cuts” for imported car market in China, while foreign firms are attempting to narrow down the price difference with China’s domestic rivals.
 
Automotive Foresight is a consultancy based out of Shanghai while Yale Zhang is its head. According to Zhang the reduction of price seen among the “foreign premium brands” might be forced to “adjust the price” with their local vehicle production in China. Likewise, the prices of the cars in affordable range will gradually be impact whereby including even the “local Chinese brands”. In Zhang’s words:
“With imminent price adjustments in the higher-end segment, that will over time lead to a pricing adjustment for the entire market”.
 
While Reuters added that:
“Other carmakers, including Japan’s Toyota Motor Corp and BMW, said after the tariff cut that they would look at adjusting their retail prices in China to provide competitive offers to consumers”.
 
References:
reuters.com







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