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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Tesla, the third-largest imported car brand in South Korea, has sharply reduced prices for its key models by as much as 9.4 million won (approximately USD 7,000), intensifying competition in the local electric vehicle market. The move is widely seen as an effort to close the gap with Mercedes-Benz, which ranked second in cumulative imports last November.
According to the automotive industry on January 1, Tesla Korea lowered prices for its Model 3 sedan and Model Y SUV starting December 31. The Performance all-wheel-drive (AWD) version of the Model 3 saw the steepest cut, falling by 9.4 million won to 59.99 million won.
For the Model Y, the Premium Long Range AWD variant was reduced by 3.15 million won to 59.99 million won, while the Premium Rear-Wheel Drive (RWD) version dropped by 3 million won to 49.99 million won—bringing the entry price into the 40 million won range.
The aggressive price cuts are widely interpreted as part of Tesla’s strategy to strengthen its presence in the Korean market. Between January and November last year, Tesla sold 55,594 vehicles in Korea, nearly doubling its year-on-year sales volume. The company currently ranks third in imported vehicle sales, behind BMW (approximately 70,000 units) and Mercedes-Benz (around 60,000 units).
Industry analysts also view the move as a preemptive response to upcoming changes in South Korea’s electric vehicle subsidy policy. Tesla is reportedly preparing to launch a new Model 3 “Premium Long Range RWD” variant in Korea early this year. The model, which recently received domestic certification, offers a driving range of up to 551 kilometers per charge—longer than the existing RWD (382 km) and Long Range AWD (508 km) versions.
Under the revised subsidy framework announced by the Ministry of Environment, electric vehicles priced below 50 million won will be eligible for full government subsidies starting next year, while vehicles priced between 50 million and 80 million won will receive partial support. Currently, full subsidies apply to vehicles priced below 53 million won, with partial subsidies available for models priced up to 85 million won.
Tesla has previously adjusted prices in response to subsidy thresholds. In April last year, the company lowered prices by approximately 7 million won when it launched the updated Model Y “Juniper,” aligning pricing with revised subsidy eligibility criteria.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
