Tesla offers two models in China, the Model 3 sedan and the Model Y crossover. From 15% in 2020, its share of the China EV market fell by a third to just 10% in 2022, according to data from the CPCA. While Tesla has increased sales in China, its second-largest market, it has also lost share. Grace Tao, Tesla’s vice president in charge of external communications in China, said previously the price cuts in China reflected engineering innovation and answered Beijing’s call to encourage economic development and consumption.Ĭhina’s Association of Automobile Manufacturers expects sales of EVs and plug-in hybrids to surge by 35% in 2023 to 9 million vehicles – nearly a third of China’s total new vehicle sales. ![]() Tesla did not respond to Reuters’ request for comment on its China business. “Its slowness to respond to Chinese consumers’ preferences has led to a very passive positioning for Tesla to rely on few means such as price cuts to stay competitive.”Įven Tesla Chief Executive Elon Musk himself has conceded that China is where his firm could face its toughest competition. “Tesla’s facing a serious problem of a very limited product mix,” said Cui Dongshu, secretary general of China Passenger Car Association (CPCA). Tesla’s thick profit margins have put it in a position to take a price war to competitors in China and beyond, analysts say.īut they say Tesla has lagged competitors in China in introducing new models, improving navigation systems and adding luxe interior touches or white-glove customer service to serve the developing range of consumer preferences for EVs. Most immediately, Tesla’s January price cuts drove deliveries of its China-made vehicles up 18% from December. automaker needs to up its long-term game to avoid choking on the dust of fast-moving rivals in the world’s biggest electric vehicle market. SHANGHAI (Reuters) – Slashed prices have given Tesla’s China sales a pop, but analysts, and even fans, warn the U.S.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |