Tesla cuts Model 3 price in China as BYD sales rise and Europe registrations drop

Electric vehicle (EV) maker Tesla has lowered the price for its Model 3 rear-wheel drive version in China as it faces tough competition from the country’s local automakers. The price slash comes as deliveries are expected to begin this month.

Price for the new Model 3 variant, reduced to ¥259,500  ($36,278.99), which is 3.7% or ¥10,000 less than the launch price on August 12. 

Tesla’s longest-range model launched last month, the car has a driving range of 830km on a single charge. 

China’s auto industry has long been battling an intense price competition marked by steep discounts that prompted the Chinese government to intervene.

In May 2025, Beijing warned that it would penalise companies lowering prices, fearing it would put the country’s EV industry at risk as discounts eat into profit margins.

As a result of the restrictions, Chinese EV star and world’s largest electric vehicle maker BYD reported a decline in quarterly profit for the first time in over three years, according to Reuters.

Tesla’s price reduction for the new Model 3 variant comes as BYD eats into the Elon Musk company’s European market share. In July, it reported a 40% decline in sales for the seventh month straight, while that of BYD tripled. 

Sales numbers in the following month continue to paint a dull picture for Tesla. In August, the EV company managed to strike only 210 registrations in Sweden, down a whopping 84% in the same month last year, according to Reuters. 

Meanwhile, the EV company is expanding its market in India. In recent months, Tesla launched two showrooms in India, one each in Mumbai’s Bandra Kurla Complex (BKC) and Delhi’s Aerocity. 

The company is also expected to open a service centre, warehouse, and retail outlet in Orchid Business Park on Sohna Road, Gurugram. It has signed an area of 50,914 square feet for nine years. 

Also Read: Four times bigger than Tesla Gigafactory: India’s richest man throws the gauntlet