April 24, 2020 / 9:17 AM / a month ago

UPDATE 1-Tesla's China-made Model 3 prices rise after EV subsidies cut

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BEIJING, April 24 (Reuters) - U.S. electric vehicle maker Tesla Inc's prices for two China-made model 3 variants rose after authorities cut subsidies in the world's biggest auto market.

China cut subsidies on electric vehicles by 10% this year, effective April 23, but there will be a three-month transition period.

After the adjustment, the starting price for the Shanghai-made Standard Range Model 3 sedans will rise to 303,550 yuan ($42,900) from 299,050 yuan, while Long Range Model 3 cars, which Tesla plans to roll out from June this year, will be priced at 344,050 yuan versus 339,050 yuan, a company website showed.

Prices for those models before subsidies remain unchanged.

Tesla, which started delivering cars from its $2 billion Shanghai factory last year, saw its China registrations rose to 12,709 units in March from 2,314 in February.

The subsidies will apply only to passenger cars costing less than 300,000 yuan ($42,376) after the transition period. China will also in principle cut subsidies by 20% in 2021 and 30% in 2022.

Hit by the coronavirus epidemic, China's overall car sales fell 42% in the first three months compared with a year earlier. But the auto industry expects sales to recover as the government promises more supportive policies to boost consumption. ($1 = 7.0794 Chinese yuan renminbi) (Reporting by Yilei Sun and Brenda Goh; Editing by Muralikumar Anantharaman and Kim Coghill)

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