Half of Tesla Model 3 Long Range Subsidy… Shall we lower the selling price?

The subsidy for the Tesla Model 3 Long Range Trim has been sharply cut to less than half. This year’s subsidy for Long Range, which became the’electric car throne’ with 7039 units sold last year, was 5.13 million won (total of government and local governments, based on Seoul city), down 7.37 million won from 12.5 million won last year. As a result, the actual purchase price to be borne by consumers is 59.6 million won, which is a leap from last year (52.29 million won).

For electric vehicles, which are more than 10 million to 20 million won more expensive than an internal combustion locomotive of the same class, the government subsidy policy has a significant impact on sales. In particular, the long range accounted for more than 20% of electric vehicles (about 31,000 units) sold last year. The increase in price of 7 million won is expected to affect the sales of other electric vehicles.

On the 21st, the Ministry of Environment announced the reorganization of the subsidy system for electric vehicles, and announced this year’s national subsidies (excluding subsidies from local governments) for 22 electric vehicles. Model 3’s long range was 3.41 million won, the second smallest of 22 models. The Model 3 performance trim was the lowest at 3.29 million won. Local government subsidies linked to the national treasury subsidies are 1.72 million won (based on Seoul City) and 1.64 million won, respectively.

The long range runs the longest among electric vehicles on the market with a mileage of 446 km per charge. However, the second smallest subsidy benefit was due to the reorganized subsidy policy this year. Tesla vehicles ranked high in relative evaluation based on fuel economy and mileage, but did not meet incentive payment requirements such as low-temperature mileage ratio.

First, Long Range received 4,200,000 won in the’fuel economy subsidy’ category, which is up to 4.2 million won. Also, the’driving distance subsidy’ that can receive up to 2.8 million won was filled with 2.8 million won. That’s not a bad shame.

However, the implementation subsidy (up to 500,000 won) given to companies that achieved the low-emission vehicle supply target system and the energy efficiency subsidy (up to 500,000 won) to vehicles with a high’low-temperature mileage ratio’ were ‘0 won’. Tesla is not the target of the low-emission car distribution target system, as’automobile companies with more than 4500 sales in 2009′. In addition, the long range’s’room/low temperature mileage ratio (low temperature/room temperature)’ is 61%, which does not correspond to the requirement for energy efficiency subsidies (65% or more).

The decisive threshold was the provision of’electric vehicles in the price range of 60 million to 90 million won, and 50% of subsidy payments’. The long-range subsidy, which reflects fuel economy and mileage, was originally 6.68 million won, but it was cut to 3.41 million won, which is half due to this regulation.

In addition, local government subsidies that are linked to the government subsidy payment ratio (subsidies for each vehicle/maximum support for government expenses) will be reduced. When applying for a subsidy for a long range in Seoul, it will be 1.72 million won, which is 43% of the maximum 4 million won (341 million won / 8 million won).

On the other hand, Hyundai Motor Company’s Kona Electric (basic) and Kia Niro (HP) satisfy all the items and receive a total of 8 million won in national subsidies and 4 million won in local government subsidies.

On this day, a number of articles were posted on the portal’s electric car club cafe asking and answering whether or not to buy the Model 3 Long Range, which has actually increased in price. It shows that the price, which soared 7 million won a month, is affecting consumers’ choices.

Tesla Korea is known to have expressed considerable dissatisfaction with the policy of the Ministry of Environment. An industry insider said, “It is not intended (the Ministry of Environment), but it is true that Tesla has many adverse requirements.” The same is true of the scope of’Companies subject to the low-emission car distribution target system’ based on sales volume in 2009. This is because Tesla at the time did not sell cars in Korea. In response, an official from Tesla Korea replied, “I am watching the situation.”

An official from the Ministry of Environment explained the provisions of differential payment by price range at the subsidy policy briefing held on YouTube on the same day. Sam-gi Son, head of the Ministry of Environment’s Atmospheric Future Strategy Division, said, “It was (prescribed) to allow more consumers to buy electric cars,” and said, “After a consumer survey, I preferred the price of 30 million to 50 million won most.

Tesla is operating the model 3 price flexibly in overseas markets. Last year, the Korean market also raised prices twice. In addition, in May of last year, when the Chinese government limited the subsidy payment standard for electric vehicles to “300,000 yuan (about 51 million won),” the trim price of the “Standard Plus” model 3 entry model was lowered from 320,000 yuan to 290,000 yuan.

In addition, in Germany, the price of the Standard Plus was recently reduced from 42,990 euros to 39,990 euros (about 53.7 million won). The long range was reduced from 52,900 euros to 49990 euros (about 67.2 million won). According to the European Chamber of Commerce in Korea, the German government provides subsidies of 6,000 euros (about 8 million won) to electric vehicles under 40,000 euros and 5,000 euros (about 6.7 million won) for electric vehicles of 45,000 to 60,000 euros.

For this reason, the industry is paying close attention to Tesla’s pricing policy. This is because if Tesla Korea adjusts the long range price to 59.9 million won to break the’half subsidy for vehicles over 60 million won’, the actual purchase price of consumers is 49.7 million won (subsidy 10. .

Professor Lee Ho-geun of Daedeok University (automobile) said, “I know that the imported car industry such as Mercedes is discussing in-depth countermeasures for the subsidy policy of the Ministry of Environment.” “(If the company lowers the price) “You can buy more electric cars with it,” he predicted.

Manager Son Sam-gi also said, “Each electric vehicle subsidy (published on this day) is based on last year’s price, and it may vary (depending on the price policy of the company).

Reporter Kim Young-joo [email protected]