/ Industry, News, Tesla / Tesla woes China fans with price strategy

Tesla woes China fans with price strategy

Linked In Share
Tesla woes China fans with price strategy

Although in the world’s biggest car market big prices mean prestige, premium ownership and luxury experience, Tesla decided to adopt a different price strategy for its coveted Model S.

Actually, the fact that their lower-than-usual 734,000 yuan ($121,400) China price tag for the Model S – which is still around 50% higher than in the US – only reflects “unavoidable” taxes and transport costs could prove a marketing coup. In the communist country foreign brands have been constantly under scrutiny from state media and regulators, who started an offensive against what they call rip off prices.

An unexpected blog post – another brilliant marketing strategy – titled “A Fair Price” and released last month drew outstanding support from China’s active net surfers after it was posted on popular Chinese social media channels – it detailed piece by piece their Model S price.

“If we were to follow standard industry practice, we could get away with charging twice as much for the Model S in China as we do in the United States. But we’re doing things differently,” Tesla said in the blog on January 22.

The idea could prove unsuccessful according to some analysts, as Chinese premium buyers are usually expecting a hefty price tag that would guarantee the luxury quality, or according to other opinions prove to be the turning point for other brands to follow.

“Price transparency helps because people see that as different, but the lower price itself, I don’t see a big impact from that,” said Andreas Graef, Shanghai-based principal focused on automotive at consultancy A.T. Kearney.

“It’s not just about the pricing strategy, but more to show how to communicate with Chinese consumers in the context of a more transparent pricing world,” said Shawn Wu, Shanghai-based project manager at consultancy SmithStreetSolutions.

Tesla in 2013 sold around 22,500, mostly in the United States but now the company expands its foreign arms to Europe and especially China, where it expects a one-third growth contribution to its sales.

Via Reuters

by Aurel Niculescu (my Google+) - Thursday, February 6th, 2014 - filed under Industry, News, Tesla. Image credit: .
Linked In Share
Related Articles
china Model S price strategy


Discuss: Tesla woes China fans with price strategy

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

Ecclestone to keep F1 job after $100m court deal – report
Ecclestone to keep F1 job after $100m court deal – reportAug.2 (GMM/Inautonews.com) Bernie Ecclestone looks set to avoid jail and retain control of formula one. Germany's Suddeutsche ...
End of an Era: Fiat merges with Chrysler
End of an Era: Fiat merges with ChryslerToday is the end of Fiat as an Italian company after it merges with Chrysler. Fiat SpA, the largest manufacturer in Italy will be ...
40% of BMW sales from front-wheel models
40% of BMW sales from front-wheel modelsBMW and Mini are preparing to launch quite a few front-wheel drive models as Corporate and Governmental Affairs spokesperson for ...
Alfa Romeo not for sale
Alfa Romeo not for saleIt hasn’t been the best kept secret that Volkswagen Group has wanted for the past 2 years to acquire the Alfa Romeo Brand from ...
Auto industry sales to rise 11% in July
Auto industry sales to rise 11% in JulyJuly is expected to bring an 11% increase in the new cars and trucks sales, as U.S. consumers took advantage of sales, leasing ...
Successful first half of 2014 for Porsche
Successful first half of 2014 for PorschePorsche has boosted its revenue and profit in the first 6 months of the year as the company released a series of numbers to ...
Last Lamborghini Veneno Roadster for sale by German dealership
Last Lamborghini Veneno Roadster for sale by German dealershipA German dealership is offering the last Lamborghini Veneno Roadster for sale at a whopping price of 5.4 million euros. Usually ...
[VIDEO] Drifting world record set in Toyota GT86 – 145 km
[VIDEO] Drifting world record set in Toyota GT86 – 145 kmA Toyota GT86 has managed to set a drifting world record on an improvised track after travelling sideways for no less than 145 ...
Citroen DS3 Cabrio DStyle by Benefit
Citroen DS3 Cabrio DStyle by BenefitA new special edition of the Citroen DS3 Cabrio has been introduced, the DS3 Cabrio DSTyle by Benefit, which is available for ...
Mercedes-Benz S-Class Pullman leaked
Mercedes-Benz S-Class Pullman leakedThe hot version of the new-gen Mercedes-Benz S-Class, the Pullman, has recently leaked in some patent drawings which have ended ...
Hyundai plans subcompact crossover to rival Nissan Juke
Hyundai plans subcompact crossover to rival Nissan JukeThe South Korean based automaker Hyundai is planning to introduce a small crossover in its lineup which will become a rival for ...
Top U.K. dealership sells its 1000th Dacia
Top U.K. dealership sells its 1000th DaciaNess Motors (Inverness, Scotland) have sold their 1000th Dacia, a landmark for the dealership, making them the no. 1 Dacia ...
Unique number plates for supercars in U.K.
Unique number plates for supercars in U.K.Even if nowadays we can change almost everything about the cars we own, the laws insist on using the same old design for the ...
Mazda and Subaru profit from strong U.S. sales
Mazda and Subaru profit from strong U.S. salesMazda Motor Corp and Subaru parent company Fuji Heavy Industries Ltd. said they are on the way to making full-year profits after ...
Ford and GM sued for music piracy
Ford and GM sued for music piracyDue to a feature embedded in their audio unit software, the cars produced by GM and Ford can actually rip audio CDs. The ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

Citroen DS3 Cabrio DStyle by Benefit 1
mercedes-benz s-class pullman leaked 1
mercedes-benz a-class sedan 1
subaru brz scion fr-s iihs crash test 1
mercedes-benz c63 amg tuning mcchip-dkr 1
2015 audi q3 1
audi r8 v10 tuning k.man 1
mercedes-benz e-class uk 1
audi a7 tdi tuning mr racing 1
2015 hyundai i20 1
ferrari california t test mule 1
bmw x4 xdrive35d tuning manhart performance 1

More automotive from inautonews
Today is the end of Fiat as an Italian company after it merges with Chrysler. Fiat SpA, the largest manufacturer in Italy will be leaving 115 years of reign in Italy as the Agnelli family and other investors are meeting in Turin. The new Fiat Chrysler Automobiles NV will be incorporated under the ...
read more
Inautonews Editors Section
Review – Hungarian GP 2014 Ricciardo strikes again
Review – Hungarian GP 2014 Ricciardo strikes againDaniel Ricciardo’s first win was a lucky one, benefitting from the technical issues encountered by the Mercedes pair. His second win also had a ...
Hungaroring – the trip is worth every penny
Hungaroring – the trip is worth every pennyAll those who went to the Hungaroring for their first race on site had plenty of action to see. They will come back with high expectations, after a ...
PREVIEW – Hungarian GP 2014
PREVIEW – Hungarian GP 2014“The circuit is a decent measure of a car’s mechanical grip, due to the need of having good traction out of many slow corners. In terms of ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety Subaru BRZ and Scion FR-S earn Top Safety PickThe Subaru BRZ and Scion FR-S sports cars have just been awarded with a Top Safety Pick from the ... New lawsuit for General Motors over faulty ignition switchesA Texas lawyer has filed a lawsuit against GM on behalf of 658 people who have been either injured, ...
Safety Section