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Everybody in the biz wants a piece of China’s massive car market. The communist country currently has the biggest demand for new cars on the planet, and with the government’s plans to reduce carbon emissions and clean up the air, electric vehicle makers are among the first to knock on the nation’s door.
Tesla Motors CEO Elon Musk said local productions could cut sales prices of Tesla cars in China by a third, thanks to reduced shipping costs and avoidance of import duties. According to Wall Street Journal, the billionaire inventor’s remarks were made at a forum on Thursday at Tsinghua University in Beijing. Musk believes that by 2030, more than half of the newly produced vehicles in the world will be battery-powered, and China will take the biggest share.
Musk's plan to conquer the Chinese market with Tesla’s premium electric vehicles haven’t worked out that well lately, with the company’s local branch taking a step back earlier this year. The California-based green carmaker decided to cut some jobs over weak sales, with local media reports claiming that as much as 30% of its 600 staff were targeted.
On the other hand, Musk claims Tesla did deliver 3,025 cars to Chinese consumers the first three quarters of 2015 and that the company needs to reach 5,000 or more in China per year to be successful.
Manufacturing vehicles in China is not exactly easy as pie. Tesla Motors may be already working with Chinese Internet company Baidu on GPS navigation and automated driving, but in order to open a manufacturing line in China, he’d need to find a local associate first. That is because China currently prohibits foreign automakers from assembling vehicles on the local market without a Chinese partner.
Nevertheless, according to the source, Tesla is in consultations with Chinese officials about producing its electric vehicles in the country and hopes to make an announcement soon. Musk has surprised the automotive world before, he may as well do it once more.
Musk's plan to conquer the Chinese market with Tesla’s premium electric vehicles haven’t worked out that well lately, with the company’s local branch taking a step back earlier this year. The California-based green carmaker decided to cut some jobs over weak sales, with local media reports claiming that as much as 30% of its 600 staff were targeted.
On the other hand, Musk claims Tesla did deliver 3,025 cars to Chinese consumers the first three quarters of 2015 and that the company needs to reach 5,000 or more in China per year to be successful.
Manufacturing vehicles in China is not exactly easy as pie. Tesla Motors may be already working with Chinese Internet company Baidu on GPS navigation and automated driving, but in order to open a manufacturing line in China, he’d need to find a local associate first. That is because China currently prohibits foreign automakers from assembling vehicles on the local market without a Chinese partner.
Nevertheless, according to the source, Tesla is in consultations with Chinese officials about producing its electric vehicles in the country and hopes to make an announcement soon. Musk has surprised the automotive world before, he may as well do it once more.
Google News