CHINA TOPIX

11/21/2024 07:19:33 pm

Make CT Your Homepage

Tesla Motors Plans On Producing Electric Cars in China In Next 3-4 Years

tesla-motors-model-s

(Photo : Reuters) Tesla Motors has announced a new pilotmode to the Model S.

Elon Musk, the chief executive of Tesla Motors, foresees China as the electric carmaker's largest market in the near future as he aims to produce a clean-energy vehicle in the country within the next three or four years.

Besides opening Tesla factories in China, the firm plans to open at least 30 charging stations by the end of 2015, reports Want China Times. In April 2014, Telsa China Vice President Veronica Wu told Tencent Tech that the carmaker also plans to put up after-sales service centers in major Chinese cities such as Beijing, Shanghai, Guangzhou, Hangzhou, and Chengdu by the third quarter of 2014.

Like Us on Facebook

Some of these centers would also function as dealership to ensure that there would always be a Tesla service hub within a 200-kilometer radius.

The new service hubs add to the charging stations that Tesla is constructing around Chongqing, part of the 200 to be built in major urban centers in the coming months. There are at least two such charging stations already running at Chongqing Tiandi and Caifu Zhingxin, reports Business Insider. Chongqing's New North Zone will be the future site of Tesla manufacturing facilities.

Tesla plans on adding to the electric vehicle industry as the firm helps to address China's pollution levels in a nation where registered vehicles reached 62 million in 2009 and are expected to exceed 200 million by 2020. The big jump is part of the anticipated ten-fold hike in China's vehicle market between 2005 and 2030, according to estimates by New York-based management consultancy firm McKinsey&Company.

Recent statistics show that Chongqing has almost 4 million cars after 700,000 units were added in 2013. Among Tesla's competitors in the production of electric and hybrid vehicles in China is global giant BMW and domestic manufacturers such as BYD Auto of Shenzhen.

BYD's Qin, a plug-in hybrid compact sedan rolled out in 2013, is the fastest-selling electric car in China. From January through August, the Qin sold 7,800 units.

Subsidies have also made the price of pure electric cars feasible for many Chinese consumers. For instance, the Jianghuai iEV4 has a price tag of 70,000 yuan ($11,500), while the Luis 4U made by Zotye Auto is even more affordable at 50,000 yuan ($8,160).

Foreign brands such as Tesla and BMW are also popular among Chinese motorists, especially those who can afford its electric and hybrid models.

Making electric cars in China would mean shaving off at least 3,375 yuan off the price tag due to the total $22,600 shipping and handling fees plus $19,000 customs duties and taxes at an exchange rate of $1=6.05 yuan.

Real Time Analytics