Tesla has slashed the price of its Model Y Long Range and Performance vehicles in China, Reuters reports.

The announcement was made in a notice this week.

The automaker dropped the starting prices of both models by 14,000 RMB ($1,934.58). The Model Y Long Range’s starting price has dropped 4.5% to 299,900 RMB (around $41,000) and the starting price of the Model Y Performance is now 349,900 RMB (around $48,000), down 3.8%.

Tesla also said in its notice that it would offer insurance subsidies in China of 8,000 RMB (around $1,000) for Model 3 buyers of entry-level, RWD versions of the Model 3 inventory vehicle between 14 August and 30 September this year.

According to data from the China Passenger Car Association, sales of Tesla’s China-made vehicles fell 31% in July from June.

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By GlobalData