Tesla responds to cuts in import tariffs by Beijing with price reductions for mainland customers

Tesla said on Tuesday night it had “adjusted the prices for Model S and Model X in mainland China”, as a result of China’s decision to cut car import duties. According to an announcement on its official WeChat account, the price adjustments had been circulated to all its stores on the mainland.

Tesla’s announcement followed one by China’s Ministry of Finance earlier in the evening, that it would slash import tariffs on vehicles and auto parts from July 1, echoing a promise by President Xi Jinping last month to boost the import of cars such as Tesla’s electric vehicles.

Tesla did not reveal the amount of price reductions, but said cars that had not been delivered to customers would follow the new prices, regardless of their date of customs clearance.

The ministry said import duties on vehicles will be cut from the current 20 or 25 per cent to 15 per cent, and tariffs for auto parts will also be reduced. It said the decision was aimed at “upgrading the industrial structure and meeting domestic consumers’ demand”.

The cuts came a day after China and the United States agreed to substantially reduce the trade imbalance between the two countries, following negotiations between top economic policymakers.