According to Tesla Inc’s China website, the U.S. electric vehicle maker will cut the starting price for its China-made Model 3 sedans by 16% to $42,919 (299,050 yuan) after it receives Chinese subsidies for electric vehicles.

The reduction in vehicle prices forms part of a slew of changes Tesla has made to its sales policy in China, including tweaking prices for car accessories and home charging facilities.

On Thursday, Tesla stated it plans to start delivering cars from its Shanghai factory to the public on January 7.

Earlier this week, Tesla had said 30% of its China supply chain was localized. It aims to completely localize its China supply chain by the end of 2020.

Tesla plans on ramping up Model 3 deliveries in January 2020 as well as doubling the number of service centers and fast charging stations in China this year, said its executives.

Tesla’s Shanghai plant has achieved a production target of 1,000 units per week, which amounts to 280 cars a day.

Sales for the China-made Model 3, have been “very good” so far, said Tesla’s executives.

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