(Yicai) Nov. 25 -- Tesla is offering a limited-time price cut and financing incentives for the Model Y in China as the US electric vehicle maker races to meet its year-end sales target amid competition from Chinese EV giant BYD.

Tesla lowered the Model Y price by CNY10,000 (USD1,380) to CNY239,900 (USD33,115) from today until Dec. 31, in a sales drive that also includes a five-year interest-free financing option.

The California-based carmaker delivered 1.294 million vehicles globally in the first three quarters of the year, a 2 percent dip on a year ago. The firm expects positive annual sales growth, for which it would need to deliver at least 510,000 vehicles this quarter, Chief Executive Elon Musk said on its third-quarter earnings call.

To quickly boost sales, Tesla has chosen to promote the Model Y worldwide. In the United States, the company is offering three months of free access to its supercharger network and its Full Self-Driving system to buyers who take delivery before the end of the year. In Europe, customers purchasing a Model Y by Dec. 31 will enjoy a year of free supercharging.

Tesla's Model Y was the world's best-selling electric car in the first three quarters of 2024, with over 844,000 sold, per CleanTechnica data. Some 36,000 sold in China last month, with total sales surpassing 373,000 this year, according to the China Passenger Car Association.

Tesla is facing intense competition in China from BYD, the country’s leading new energy vehicle manufacturer. BYD reported sales of 502,657 vehicles in October, a 67 percent surge from a year earlier, with monthly sales of its six models exceeding 50,000 units each.

China's total passenger vehicle sales are expected to top 23 million this year, possibly reaching 23.5 million, according to Yu Jingmin, executive deputy general manager of SAIC Passenger Vehicle. This suggests that average monthly sales in the last two months of the year could surpass 2.8 million.

Editor: Tom Litting