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Tesla has cut the price of its cars in the Chinese market by up to a quarter to absorb the impact on customers of customs duties imposed in the context of the US-China trade war, canceling a decision made previously to increase its prices. price.
The California-based electric car builder announced Thursday that it has cut prices for its S and X models in China by 12 to 26 percent. "We are absorbing a significant portion of the fare to make our cars more affordable for customers in China," Tesla said in a statement.
China imposed $ 34 billion in tariffs on US goods, including cars, rising to $ 34 billion in July, in response to Washington's attempt to freeze tariffs on a quantity similar Chinese imports, among a series of flocks triggered during the trade war between the two countries. .
In the same month, Tesla founder Elon Musk signed an agreement with officials in Shanghai to open the company's first factory in China to produce lithium-ion batteries and Tesla cars.
The automaker has flip-flopped on how to fix the price of its cars to Chinese consumers as the unfavorable conditions of the trade change. Earlier in May, Beijing announced a reduction in import duties on foreign vehicles. But in July, the company announced that it would increase the price of both models by about 20% after the new rates come into effect.
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The automaker will also face a flat car market in China as stricter controls on urban transport and reductions in consumer subsidies for electric vehicles are needed. Foreign manufacturers such as GM saw their sales fall by 15% in the three months to September.
China's auto sales will fall in 2018 for the first time since 1990, according to Nomura forecasts.
"We believe that the pent-up demand that has fueled the strong growth of the auto market in the early years has been largely digested over the past decade," wrote Jeffsey analyst Patrick Yuan, predicting that demand future of car owners would come from low-income consumers.
Meanwhile, passing on the cost of tariffs to consumers could put Tesla at a disadvantage compared to dozens of commercial electric vehicle brands entering the increasingly saturated Chinese market, some with state support, Bill said. Russo, founder of Automobility, a company based in Shanghai. consulting company based.
"[Tesla] is having to compete in a market where there is more. . . The EV offer is coming in, sometimes at very aggressive prices, "Russo said.
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