Tesla Owns 81% Of Chinese Market For Imported EVs, Not So Much Overall

AUG 7 2015 BY JAY COLE 14

May Tesla's Struggles In China Have Nothing To Do With The Locals Understanding The Car And More To Do WIth Tesla Not Understanding How Business Is Done In The Country

Perhaps Tesla’s Struggles In China Have Nothing To Do With The Locals Understanding The Car, And More To Do WIth Tesla Not Understanding How Business Is Done In The Country

When it comes to the NEV (new energy vehicle) market in China, Tesla Motors owns it…well, at least the imported NEV market anyway.

Hurray For Finally Being Able To Use This Photo Of The Tesla Model S In China!

Hurray For Finally Being Able To Use This Photo Of The Tesla Model S In China! (click to enlarge -its pretty)

The China Automotive Technology and Research Center said at an industry conference (via the Wall Street Journal) that Tesla accounts for more then 80% of all foreign made plug-in vehicles (BEV and PHEVs) through June of this year.

Just how many Model S sedans did Tesla need to sell in China to eclipse the 4 out of every 5 mark?   The auto research group says that 2,147 out of 2,645 were Teslas.

Illustrating just how hard it is to sell EVs (or really any car) in China without having a domestic partner, is the fact that over 25,000 EVs were produced locally in June alone, bringing the half year total to more than 78,500.  So while Tesla may own 81% of the foreign EV market share, they only occupy 2.5% of the total Chinese market.

Bottom line when it comes to China:  You got to built there, to sell there.

WSJ, Gasgoo

Categories: Sales, Tesla

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14 Comments on "Tesla Owns 81% Of Chinese Market For Imported EVs, Not So Much Overall"

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DonC

Yes, the Chinese government is making it impossible to sell in China unless you build there. The problem is that to build there you have to allow the Chinese full access to at least part of your technology.

That said, China has been a complete flop for Tesla. Not likely to get better soon given the economy there. It’s ridiculous to say that Jay has a vendetta against Tesla China. Unless of course you define “vendetta” as saying that an NFL team that goes 1-15 isn’t a very good team.

Bonaire

Maybe a good plan is just to sell to all other markets – better. China is lucrative but also nationalistic. They do buy the US brands but tend to require in-country factories to bring them “onboard”.

TomArt

Wait a minute – are we reading the same article?!? China is very much a success for Tesla – to be able to beat all other imports by such a staggering margin is truly a testament to the product demand!

Just think how many they could sell if Tesla danced to China’s tune?

sven

China slaps a 25% import duty on imported cars, and does not allow foreign automakers to build factories and thus avoid the 25% import duty unless they form a 50/50 joint venture with a Chinese automaker to manufacture the cars. If foreign automaker go down the joint venture route, then they must reveal their intellectual property, trade secrets, and production engineering to their Chinese joint venture partners, not to mention also split all profits 50/50.

The question is, how is China allowed to get away with this as a member of the World Trade Organization?

Pushmi-Pullyu

Well said, sir.

It’s an ongoing travesty that other nations put up with this kind of crap being the usual practice in China. Why haven’t other countries banded together to impose an international tariffs against importing Chinese goods, to force China to play nice on the international market?

Nate

“Why haven’t other countries banded together to impose an international tariffs against importing Chinese goods, to force China to play nice on the international market?”

Good question Pushmi-Pullyu. My guess is that imported Chinese goods are a big part of the economy for them. Possible spike in inflation? I don’t know – just throwing that idea out there.

ModernMarvelFan

Because WTO allows it.

It is part of the negotiation that allowed China to do that.

In fact, it is common for all “developing” nations to allow that in WTO rules. That is usually based on a time period which the import tax will be reduced gradually.

It is a way to “play fair” to allow developing nation to develop its own industrial base.

Pushmi-Pullyu

You make some very good points, but I think it’s an exaggeration to say the China venture is a “complete flop” for Tesla. It just hasn’t been as much of a success as they hoped.

Plus, recent reports are that Tesla sales are up in China.

Robb Stark

Really? Comparing Tesla to the market for passenger and commercial EVs?

Tesla is currently the 10th best selling passenger EV in China by cars sold.

http://ev-sales.blogspot.com/search/label/China

By Yuan sold it is number one. Which is how most industries measure market share. Because profits are measured in currency units not units sold. Despite the fact that,like the US, Tesla only sells in a limited number of markets inside China.

Does Jay have a vendetta against Tesla China?

ModernMarvelFan

Well, how do you know that Tesla price reflects actual profits?

Since Model S is imported and it still faces a stiff tax which contributes to a big portion of the price. So we know that government gets that share, NOT Tesla. In addition to sales tax, the other fees don’t go to Tesla either.

Also, local brands qualify for much higher incentives which means that more potentially portion of the car price is automaker profits that Tesla doesn’t get.

So claiming price translates directly into profit is over generalizing…

You “could be” right. But until we know the profit margin of the Chinese EV makers, you can’t just make “blank” statement on price alone…

Micke Larsson

By Yuan sold then the BYD Qin is number one too.

It’s hardly a vendetta. It’s reporting on EV news, models and other EV related stories, both good and bad and in the case of Tesla in China they are not doing all that well and that should also be reported.

TomArt

Everybody knows that China plays a very nasty hand against imports, so that’s not news. It’s a given that Tesla would sell more if they partnered domestically. Nobody is denying that, and neither is Tesla.

But that’s not the point of the statistic.

The point is that Tesla was able to beat all the other imports by a staggering margin! They are clearly doing something right for demand for their product to be that strong.

ModernMarvelFan

What you said is true.

But also keep in mind that Tesla is the ONLY EV maker that actively push for sales in China.

Does any other EV makers even make serious attempt to sell in China?

Pushmi-Pullyu

ModernMarvelFan asked:

“Does any other EV makers even make serious attempt to sell in China?”

I don’t know if you’d consider it a “serious” attempt, but BMW certainly is trying:

http://www.wsj.com/articles/bmw-unveils-plans-to-build-electric-car-charging-stations-in-shanghai-1401266088