Source: Tesla

On March 5, Tesla extended the ongoing 8,000 CNY insurance subsidy eligible on the purchase of any Model 3 variant in China, a sales promotion that was first launched on February 5 for a limited time until February 28.

The subsidy can be applied on a customer order, factory inventory cars, show cars, and test drive cars.

With the insurance subsidy, Chinese consumers can buy the entry-level Model 3 rear-wheel drive for 227,500 CNY (c. 31,400 USD), the lowest priced M3 ever.

The Long-Range and Performance versions will cost as low as 267,500 CNY and 331,500 CNY, respectively.

The extended sales promotion coincide with the release of lackluster wholesale (domestic and export) sales in February as Tesla sold only 30,688 vehicles, a 49.2% year-on-year drop.

Tesla is facing stiff competition in China, especially since phone maker Xiaomi debuted the SU7 on March 28, 2024.

The SU7 has taken the market by storm, selling over 7,000 units in its first month and ramping up to over 20,000 monthly units.

In fact, as of January 2025, the SU7 has sold 162,384 units since launch, compared to 152,748 Tesla Model 3.

The SU7 also sold more than the Model 3 since December, nearly tripling M3 sales in January with 22,897 SU7 delivered, compared to 8,009.

Source: Xiaomi

While Model 3 sales results have yet been announced for February in China, Xiaomi did reveal that it has once again delivered over 20,000 units, for a cumulative sales volume exceeding 180,000 units since launch.

Alongside the Model Y facelift debut on January 10, Tesla had also launched an upgraded Model 3 RWD, increasing the price by 3,600 CNY, from 231,900 CNY to 235,500 CNY.

That upgrade featured a slightly larger 62.5 kWh CATL LFP battery (previously 60 kWh), improving the CLTC range by 28 kilometers, from 606 km to 634 km.

However, the price increase was short lived as Tesla initiated the insurance subsidy promotion less than a month later, on February 5.