The company is likely to offer similar price cuts for its car models in China as well.
With the global auto sector battling to spur demand from buyers, Tesla is the latest car manufacturer deciding to cut prices of its various models. The company is now offering Model 3, Model S and Model X among others by up to $5000 (Rs 3.75 lakh approx). While Tesla hasn't given any official reason for the price revisions, reports suggest the company feels that lowered prices of its model could kickstart demand in the country, which has been ravaged by the pandemic with millions of people testing positive.
As per the details, Model S and Model X get the biggest price cut of $5000 considering their original price points. Now after the price cut, the entry-level versions of these two models cost $74,990 (Rs 56. 24 lakh approx) and $79,990 (Rs 59.99 lakh approx) respectively. In addition to these, the price of Model 3 has been cut by a smaller margin, $2000 (Rs 1.50 lakh approx) across all its available variants. With this, the basic version of the Model 3 now starts ar $37,990 (Rs 27.35 lakh approx).
Amongst all this, Tesla has kept the pricing of its latest product Model Y unchanged. The company is also going to offer similar price cuts for its model in China very soon.
Price cuts are a sure-shot way of luring customers, who're probably now more keen on buying their own vehicle instead of availing public transport which becomes rather unsafe with so many people travelling in the same vehicle. Industry experts in India believe COVID-19 could change the consumer sentiments towards buying a car. This is likely to encourage auto makers to come up with slew of attractive finance schemes, which allows people to spend on a four-wheeler, even when their financial situation remains uncertain.
The like of Maruti Suzuki, Mercedes-Benz and Hyundai are some of the big names to have chipped in with various loan offers and one can expect others to join them in the coming weeks.
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