File photo/Zheng Derui (NBD)

Tesla has announced a limited-time price reduction for its Model Y, slashing the final payment by 10,000 yuan until December 31st, bringing the starting price down to 239,900 yuan.

The move is aimed at boosting year-end sales and addressing the looming expiration of national subsidy policies.

Other brands like NIO and Zeekr have introduced similar incentives, with NIO offering a vehicle subsidy of 25,000 yuan and Zeekr providing discounts up to 110,000 yuan. XPeng Motors, on the other hand, has increased production capacity to shorten the delivery time for its M03 model to within 8 weeks.

Post the new price reduction, a Tesla salesperson told National Business Daily (NBD), "There has been a surge in people coming to see the cars and inquire about prices, mostly for the Model Y." The promotion also includes a five-year interest-free policy, making the Model Y's rear-wheel-drive version start with a down payment of 79,900 yuan, an annual interest rate of zero, and a monthly payment of 2,667 yuan.

As the year draws to a close, consumers looking to take advantage of national and provincial subsidies are prioritizing models that can be delivered by the end of the year. However, some popular models may be affected by production constraints, potentially impacting subsequent orders due to delayed deliveries.

Automotive brands are signaling price adjustments and shortened delivery times not only because of the approaching end of 2024's new energy vehicle subsidies but also due to increasing market competition and year-end sales pressure.

File photo/Liu Guomei (NBD)

According to the Ministry of Commerce, subsidies for scrapping and updating vehicles have been increased, with higher standards for new energy passenger cars. The deadline for applying for these "scrapping and updating" subsidies is December 31, 2024, requiring consumers to complete vehicle scrapping, new car purchases, and subsidy applications by this date.

Despite the pressure, some car manufacturers have managed to meet their annual sales targets, with only a few exceeding 80% completion. As the national new energy vehicle subsidy policy counts down, manufacturers are seizing the final window of opportunity.

The Ministry of Commerce is reportedly planning to continue the car scrapping and updating policy for next year to stabilize market expectations.

The latest data shows that the domestic car market continues to grow rapidly, with retail sales in November expected to reach about 2.4 million units. The combination of car manufacturers' limited-time policies and national scrapping and updating policies is expected to further promote domestic car consumption this year.

The China Association of Automobile Manufacturers predicts that the full-year sales of new energy vehicles in China could reach 11.5 million units in 2024.