28th April 2019 by Matt Pressman
Originally published on EVANNEX .
In electric vehicles, China has taken a leading role in the world stage. Chinese EV companies are flourishing. And the car buyers of the country are increasingly fascinated when they are electrically powered. Now Tesla is preparing for a big push in China.
Tesla's Shanghai Gigafactory is a big step for the company. ABC News Australia Reporter Bill Birtles writes: "Even by Elon Musk's standards, his Shanghai plan is ambitious: take 86 hectares of muddy farmland on the edge of the city's peninsula and start rolling out China-made land Tesla Model 3s within a year.
Can musk make it? "It's quite surprising how fast your business is developing here," said Jia Xinguang, a veteran from Beijing. "China does not have a man like Musk."
"Some believe that the cost of producing a Model 3 in China is only half that of the US. So, if the base model in the US currently costs more than $ 35,000, Tesla in China may cost as little as $ 20,000 in the future, "says Xinguang. He adds, "This would definitely have a major impact on China's new energy market."
It's no wonder that Musk is going so hard. Birtles reports: "More than half of all electric and hybrid vehicles in the world are sold in China, and annual sales are growing rapidly despite a slowdown in gasoline vehicles. Electric vehicles now account for nearly five percent of the massive Chinese auto market, and the government wants them to account for one in five new cars sold by 2025. "
Secretary Cui Dongshu said:" I do not think it is risky for Elon Musk to make such a large investment in China. " After all, at a meeting in January, Chinese Premier Li Keqiang even offered Musk a permanent residence permit.
That is, Tesla faces serious competition from domestic automakers. It states: "In China, there are more than a dozen companies that produce hybrid or electric vehicles ̵
Companies like Warren Buffet – Backed BYD could be "the biggest threat to the competition, with the Shenzhen-based company nearly reaching Tesla's 245,000 deliveries last year, with most of the cars sold in China being used." Another automaker, BAIC – owned by the government of Beijing – produced the country's best-selling model. "
" The main reason I bought one is that a government subsidy halves the price and makes it easier to get license plates for electric cars, "said Kelvin Fung from Beijing, who bought a BAIC in February, "Personally, I think Chinese cars are not as good as foreign brands, but they are quite cheap, "he said.
To this end: "Reports of quality issues and doubtful reach claims have exacerbated the views, despite the fact that with the enthusiasm of both the government and the domestic auto brands, China is not yet able to produce a true rival to Tesla." Also charging and battery technology is lagging behind the Silicon Valley carmaker.
"Elon Musk can design special products that inspire people's hearts In contrast, the electric cars developed in China are boring," says Jia Xinguang, auto analyst in Beijing. "Chinese electric cars are not that much fun."