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Tesla Announced It Secured Chinese Subsidy On Its Cars Made In China


12/06/2019


Tesla Announced It Secured Chinese Subsidy On Its Cars Made In China
Large government subsidy on purchasing of electric has been one of the drivers for the stupendous growth of demand and sale of electric cars in China. And this is something which is very crucial for the United States based all electric car maker Tesla which is completely focused now on penetrating the Chinese electric car market. The company has even set up a factory in Shanghai ion China to serve the market.
 
On Friday, the US firm announced that state subsidies would be available for its Chinese-built Model 3 cars. Analysts say that this is a crucial development for Tesla because it would help the company to make inroads in the largest electric car market of the world.
 
The Chinese authorities had earlier prepared a list of recommendations for subsidies for new energy vehicles (NEVs) and the country’s industry ministry had earlier said that the Model 3 cars of Tesla, that were churned out of its $2 billion factory in Shanghai, were on the list. Apart from electric battery powered vehicles, in China, the new energy vehicles include vehicles that are powered by hydrogen fuel cells and plug-in hybrid vehicles that run on clean as well as conventional petroleum energy sources.
 
In its official statement Tesla said that it had secured the subsidies.
 
According to the website of China's Ministry of Industry and Information Technology, the list for the generous NEV subsidy program contains two variants of Tesla Model 3 vehicles.
 
At its Shanghai plant, more than 1,000 vehicles a week by the end of 2019 is planned to be manufactured by the California, US-based electric vehicle maker. The strategy of the company is to be able to deliver those cars to Chinese customers in China before the Chinese new year on January 25.
 
In the first phase of production, the total installed capacity of Tesla at the Shanghai factory is anticipated to be about 250,000 vehicles every year which is equivalent to a manufacturing rate of about 4,800 vehicles a week. This will include 150,000 Model 3 cars.
 
Tesla did not mention anything about the amount of subsidy that owners of its cars would get and there was no immediate report stating any amount for the same.
 
According to Tesla's website, the starting price for China-made Model 3 cars is 355,800 yuan ($50,550).
 
In 2018, the total sale of NEVs was about 4.6 per cent of the total vehicles sales in the country and the Chinese authorities are aiming to boost the number to about a quarter of the total new vehicle sale in the country by 2025.
 
Further, in order to cement its place in the Chinese market, Tesla CEO Elon Musk has elaborate plans to set up a large network of after sale eservice points in China.
 
 (Source:www.foxnews.com)


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