Experts Say Tesla Model S Will Likely Spur China’s Stagnant EV Market

FEB 15 2014 BY ERIC LOVEDAY 4

Tesla Model S Priced at  $121,000 USD in China

Tesla Model S Priced at $121,000 USD in China

“With its racing body, reasonable pricing and ecological concept, Tesla’s latest pure electric sports car has caught the eye of motor enthusiasts, industry insiders and environmentalists in China.”

Tesla Website China

Tesla Website China

Writes Xinhua.

But there’s one major reason why the Tesla Model S might just be the spur that’s needed to move China’s stagnant EV market upwards.

The Model S competes with no other vehicle in China.

Zhang Junyi, an auto analyst with Roland Berger Strategy Consultants, stated:

“Tesla could be a catfish put into the sardine pool of China.”

Whatever the heck that means.

Most of China’s domestic automakers do produce EVs, but most all of them are either low-speed electrics, trikes, scooter or budget-level passenger cars.

There’s not one luxury plug-in available in China today.

Zhong Shi, an auto industry analyst, stated:

“Actually, no automakers in China consider electric sedans for individual customers a major development strategy, not to mention as luxury cars for high-end buyers.”

China has a vast pool of wealthy car buyers who will likely think that the Model S, priced at $121,000 in China, is a true bargain.  Similar vehicles (such as ICE BMW 7 Series or Mercedes-Benz S-Class) cost upwards of $180,000 in China.

If Tesla generates buzz in China as it has done so in the US, then it could be that Tesla alone spurs China’s stagnant EV segment.  We’re not implying that all EV sales in China will go Tesla’s way, but rather that interest in Tesla and in the Model S will open eyes to EV technology and could indeed convince Chinese buyers that other electric vehicles are ready for primitive too.

A sort of trickle-down effect, albeit of an unusual, odd variety.

Source: Xinhua

Categories: Tesla

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4 Comments on "Experts Say Tesla Model S Will Likely Spur China’s Stagnant EV Market"

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I think that is the Chinese translators attempt to replicate the western: ‘Big fish in a small pond.’ Inevitably something gets lost/confused in translation. Luko Bratsi sleeps with the sardines. The Chinese are all about status, class. Model S just oozes those. Also they tend very conscious of value, even though is expensive Tesla is not charging what they could have, so the ones who can afford it will not feel they are being taken to the laundry(cleaners). In addition buying one in Hong- Kong you pay regular price plus shipping. around $25k cheaper than in China. So I wonder if some astute buyer could pay less if they bought one through Hong-Kong, though the Chinese authorities are probably well aware of those sorts of attempts to evade their exorbitant tariffs. But if you are near Hong-Kong, you could register the car there but keep it at your residence. Simply pick it up and drive it home. There are about a million or so members of the Communist party, so once the party bosses get one, then most of them will want one too. Plenty of room to run. Most importantly the cadre that runs China is favorably disposed towards… Read more »

Tesla faces some hurdles they must overcome if they are to realize success in China.

First, there is the lack of public charging facilities, and for those that exist, information on where they are located is absent.

Another issue is that urban Chinese are largely apartment dwelling folks without access to home charging.

Tesla does plan on establishing a Supercharging network in China, but unlike the USA, China has an efficient high speed railway service running at 185mph between Beijing and Shanghai as well as an extensive passenger jet service. Both alternatives would take a fraction of the amount of time to get from place to place than by driving.

Tesla might find China to be a harder nut to crack than many people think.

Long time Stuart22! My days spent in the Sichuan province had plant managers riding bikes to work but the times they are a changin for the Chinese particularly the upper class. I think Tesla is well pleased with the 20,000 Model S per year primarily in the US. Add half that for Europe and equal that for a country that is 5x the population of the US market and I think Tesla will have their hands full producing 50,000 per year.

And just as the luxury numbers start to slow, they launch the Model X to keep the excitement going. After that the US and European market are already hungry for the Model E. Not sure how the Model E translates to the Chinese market but that is surely on the other side of 2018 and a whole lot can change by then.

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