Tesla has announced the renewal of its insurance subsidy program for the Model 3 in China, following the end of a previous incentive that expired on December 31.
The renewed subsidy, effective from January 1 to January 31, offers customers a RMB 6,000 ($845) discount on insurance for the rear-wheel-drive version of the Model 3, provided they complete their deliveries by the end of January.
This subsidy effectively reduces the starting price of the rear-wheel drive Model 3 to RMB 255,400, down from the regular price of RMB 261,400, reports CnEVPost.
Tesla made this announcement via a Weibo post, highlighting the subsidy’s applicability to various vehicle categories, including brand-new stock vehicles, non-brand-new stock vehicles, show cars, and test drive cars. Customers are required to purchase insurance through an agency affiliated with Tesla to avail of this offer.
In addition to the insurance subsidy, Tesla is also introducing a limited-time loan incentive. Customers who take delivery of the Model 3 and Model Y by the end of January can benefit from loan rates as low as 1.99 percent per annum, translating to an annualized interest rate starting at 3.65 percent. For the Model S and Model X, the loan rate is set at a minimum of 2.5 percent annually, with an annualized interest rate starting at 4.58 percent.
The loan offer for the Model 3 and Model Y could result in savings of over RMB 23,000, according to Tesla. Notably, Tesla’s Shanghai factory produces the Model 3 and Model Y, while the more expensive Model S and Model X are not manufactured in China, but at Tesla’s factory in Fremont, California.
The Model 3 is available in two versions in China: the base rear-wheel drive and the dual-motor all-wheel-drive Model 3 Long Range, priced at RMB 261,400 and RMB 297,400, respectively.
The Model Y comes in three versions: the base rear-wheel-drive, the dual-motor all-wheel-drive Long Range edition, and the dual-motor all-wheel-drive Performance edition, with starting prices of RMB 266,400, RMB 306,400, and RMB 363,900, respectively.
Previously, Tesla had offered an insurance subsidy of RMB 8,000 for orders of the rear-wheel-drive versions of the Model 3 and Model Y made between November 28 and December 31, 2023, with deliveries completed before the end of the year. The current subsidy is reduced by RMB 2,000 and does not yet include the Model Y.
Tesla’s sales in China have been robust, with the China Passenger Car Association (CPCA) reporting that the company sold 82,432 China-made vehicles in November, including 16,928 exports and 65,504 deliveries within China.
