(Yicai) Jan. 5 -- US electric car startup Tesla launched its largest-ever discount package for the Model 3 series in China today as several leading auto manufacturers slash prices to rev up a slow start to the year.

Tesla is offering an insurance subsidy of CNY8,000 (USD1,100) for a limited time period for all Model 3s, which reduces the starting price of the rear-wheel drive version to CNY227,500 (USD31,200), the carmaker said. It is also offering a five-year payment plan with zero interest and special auto charging rights.

It is the first time that Tesla’s insurance subsidy covers the entire Model 3 series and it is also the first time that the Austin-based company is rolling out both a five-year interest-free policy and an insurance subsidy at the same time.

On top of these incentives, Model 3 buyers can also enjoy government subsidies for electric car purchases and additional benefits provided by Tesla worth up to CNY58,000 (USD8,000), a company spokesperson said.

Xpeng Motors also launched a five-year payment policy with no interest and zero downpayment today, covering a number of models including the Xpeng X9, which was launched last month.

Car sales in January were impacted by the end-of-year sales peak in December and the slow down during this year’s Spring Festival holiday, which started in January. Sales at several leading vehicle manufacturers’ dealerships plunged over 40 percent year on year, sales staff told Yicai.

As a result, automakers are slashing prices to vie for market share. On Feb. 1, Nio said it is introducing a five-year payment plan with zero interest and 20 percent downpayment for a limited time period. And Immotors has cut the starting price of the L6 by 15 percent to CNY189,900 (USD26,000), it said today.

Meanwhile, GAC Toyota has slashed the starting price of its Frontlander marque by 30 percent to CNY89,800 (USD12,350), and has also lowered the fixed price of the Wildlander brand.

The price war among carmakers in China will continue this year and competition will be extremely fierce, Cui Dongshu, secretary-general of the Automobile Market Research Branch of the China Automobile Dealers Association, said previously.

Editor: Kim Taylor