Tesla lowered the starting price for its Model 3 sedans by 16% to 299,050 yuan ($42,919) after government rebates, amid coronavirus pandemic.
The subsidy amounts to 24,750 yuan ($3,552) per vehicle.
The price in China for imported Model 3s is 439,900 yuan ($63,133) before subsidies.
Telsa’s car registrations in China have declined for two straight months, according to Bloomberg.
The company started operating at a factory in Shanghai in January, and the facility is the electric carmaker’s only plant outside the U.S.