[ad_1]
April 28, 2019 by Matt Pressman
Originally published on EVANNEX.
With regard to electric vehicles, China has played a leading role on the world stage. Chinese electric vehicle companies have prospered. And the country's car buyers are more and more intrigued by electricity. Now, Tesla is preparing for a big push in China.
Shanghai Gigafactory Tesla represents a major change for the company. ABC News Australia Reporter Bill Birtles writes: "Even by Elon Musk's standards, his plan in Shanghai is ambitious: take 86 hectares [213 acres] muddy farmland on the outskirts of the city's peninsula and start deploying Chinese-made Tesla Model 3 in a year. "
Can Musk get there? "It's quite surprising to see how quickly his company is growing here," said Jia Xinguang, a former auto analyst based in Beijing. "China is not a man like Musk."
"Some think that the cost of producing a model 3 in China is only half of what it is in the United States. So, if the base model currently costs more than $ 35,000 in the United States, Tesla could possibly reduce it to $ 20,000 in China in the future, "says Xinguang. "This would undoubtedly have a huge impact on the Chinese market for new energy vehicles."
It's no wonder Musk is pushing so hard. According to Birtles, "More than half of all electric and hybrid vehicles in the world are sold in China and annual sales are growing rapidly, despite the slowdown in gasoline cars. Electric vehicles (EVs) now account for nearly 5% of the Chinese car market and the government wants them to account for one in five new cars sold by 2025. "
Cui Dongshu, Secretary General of the China Private Car Association, explains to this end: "I do not think it is risky for Elon Musk to make such an important investment in China." After all, Chinese Premier Li Keqiang reportedly even proposed a permanent residence for Musk when they met in January.
That said, Tesla is facing serious competition from local automakers. "China has more than a dozen companies manufacturing hybrid or fully electric vehicles, that 's about state giants, huge private companies or small start-ups.
Companies like BYD, backed by Warren Buffet, could be "the biggest competitive threat. The Shenzhen-based company was close to 245,000 deliveries from Tesla last year, with the vast majority of cars sold in China. Another builder, BAIC – owned by the Beijing government – produced the best-selling model in the country. "
"The main reason I bought one, is because a government grant has halved the price and it's easier to get plates." for electric cars, "said Kelvin Fung, a Beijing resident who bought a BAIC in February. "Personally, I think, however, that Chinese cars are not as good as foreign brands, but they are relatively cheap," he said.
To this end, "reports of quality problems and allegations of questionable range further reinforced the ideas that, despite the enthusiasm of the government and domestic auto brands, China "still has not produced a real rival for Tesla." behind the automaker of Silicon Valley.
"Elon Musk can design special products that capture people's hearts, but electric cars made in China are boring," said Jia Xinguang, an auto-computer analyst in Beijing. "Chinese electric cars are not as fun."
About the author
Matt Pressman is all about Tesla. He is a TSLA investor, has pre-ordered the Model 3 and loves to drive the company cars of the S and X families of the family. Co-founder of EVANNEX, a family-owned business specializing in Tesla aftermarket accessories, he has been a collaborator / publisher of the Electric Vehicle Vehicle University (EVU) and Owning Model S books and Getting Ready for Model 3. He writes daily on Tesla and you can follow his work on the EVANNEX blog.
[ad_2]
Source link