(Yicai) Jan. 12 -- Tesla has announced its first price cuts in China this year, continuing to fuel the price war the US electric carmaker started at the beginning of last year.

The prices of four of Tesla’s electric vehicle models sold in China were lowered by between CNY6,500 and CNY15,500 (USD910 and USD2,165), the firm said on its website today.

Tesla’s most expensive model in China is the Model Y Performance, priced at CNY363,900 (USD51,235), while the cheapest is the Model 3 Rear-Wheel Drive, priced at only CNY245,900 thanks to multiple price cuts in the past year.

The US carmaker sold 603,664 EVs in China last year, up 37 percent from the year before and accounting for 7.8 percent of the country’s total new energy vehicle sales, ranking second only to Chinese NEV giant BYD, according to data from the China Passenger Car Association. Shenzhen-based BYD sold 2.7 million vehicles last year, up 50 percent from 2022.

Tesla kicked off the price war in China’s automobile market last year after lowering the price of the Model 3 RWD by CNY36,000 to CNY229,900 in early January. Chinese EV makers immediately followed suit.

In the second half of last year, Tesla raised its prices several times. However, its selling prices remain below those in 2022. Tesla’s prices in China are its lowest worldwide.

Competition in the Chinese EV market this year should be even fiercer than last year, with sales growth slowing sharply or even going negative, Li Xueyong, deputy general manager of Chinese NEV maker Chery Automobile, recently told Yicai. The hybrid vehicle market may have a better outlook, Li added.

Editors: Dou Shicong, Futura Costaglione