Tesla is continuing to offer its insurance subsidy for the Model 3 sedan in China, despite the benefit expiring at the end of last month.
The U.S. electric vehicle (EV) maker announced on Weibo that customers purchasing any variant of the Model 3 before March 17 will be eligible for an RMB 8,000 ($1,100) insurance subsidy.
In addition, Tesla is offering a 5-year, 0-interest financing program for Model 3 buyers, with down payments starting at RMB 79,900, the company confirmed on Weibo. The insurance subsidy, initially offered from February 5 to February 28, was extended after Tesla revived the promotion, which has been used several times in the past.
Tesla’s marketing strategy aims to drive orders, with the subsidy available for purchases until March 31, despite not having actively marketed it in recent days. The company’s move seeks to encourage potential customers to make purchases ahead of the deadline.
Tesla China sold 30,688 vehicles in February, including both domestic sales and exports, a 49.16% decline from 60,365 units in the same month last year, and a 51.47% drop from 63,238 units in January, according to the China Passenger Car Association (CPCA). In the January-February period, Tesla China’s total sales reached 93,926 vehicles, down 28.74% from 131,812 units in the same period in 2024.
The decline in sales is attributed to several factors, including the Chinese New Year holiday, production line adjustments, and increased competition in the EV market, with Xiaomi’s SU7, which saw higher deliveries in both December and January, emerging as a strong rival to the Model 3.
