U.S. electric vehicle producer Tesla Inc (TSLA.O) cut the beginning cost for its China-made Model 3 cars by 16% to 299,050 yuan ($42,919) after getting Chinese subsidies for electric vehicles, as per its China website.

The decrease, mostly because of 24,750 yuan of subsidies, from a previous 355,800 yuan is among a huge number of modifications Tesla has made to its sales policy in China, including tweaking costs for car accessories and home charging facilities.

Tesla has said it intends to begin delivering cars, made at its $2 billion factories in Shanghai, to the general population on Jan. 7.

Fifteen Tesla representatives who had acquired the car were the first to take delivery on Monday after the first China-made vehicles moved off the plant’s generation line in October.

The deliveries come a year after the construction of Tesla’s just plant outside the United States started.

Earlier this week, Tesla said that 30% of its China supply chain was localized, which implies some car parts are transported in to assemble its cars. The automaker wants to localize its China supply chain by end-2020, it said at the time.

Tesla intends to increase Model 3 deliveries in January and will double the number of service centers and quick charging stations in China in 2020, its executives have said.

The plant has accomplished a generation target of 1,000 units per week or around 280 cars per day, and that sales for the China-made car had so far been “very good”, as per the executives.

Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Fortune Outlook journalist was involved in the writing and production of this article.

Leave a Reply

Your email address will not be published. Required fields are marked *