The doors of the Middle Kingdom open and Tesla has the opportunity he hoped to get into it. For almost a year, the American electric vehicle specialist has been looking for to build a factory in China without having to partner with a local partner.
On Monday, the Chinese government opened the way for him by announcing lifting restrictions on foreign holdings in the automotive sector. Starting with new energy vehicles (electric and plug-in hybrids).
2 billion turnover in China
The largest automobile market in the world, China is also in terms of electric vehicles. In 2016, Beijing registered 352,000, against only 159,000 in the United States. Above all, the Chinese government has set a goal of having 7 million electric cars in circulation by 2025.
A boon for Tesla whose sales in the country are now subject to a 25% tax. Since January 2017, the automaker has exported 18,000 cars for a turnover of 2 billion dollars (1.62 billion euros), according to data Bloomberg Intelligence.
Advantage joint ventures
For all that , according to a column published on the website of the American economic news agency, Elon Musk’s company could do not be ready to conquer China alone.
First, because joint ventures benefit from benefits distributed by Beijing. These take the form of grants for $ 7,953 per electric vehicle sold. Now, says Anjani Trivedi, specialist in the Asian economy and the author of the column, Tesla sales in Hong Kong “dropped after the government removed an incentive to sell.”
Difficulties of production
Then the Chinese government, to encourage all players in the automotive market to build cleaner vehicles by next year, has put in place a credit system. “These credits are easier to accumulate with partners,” says the author.
All these financial devices that should make it possible to lower prices. Even though Tesla has specifically created its Model 3 to make an electric car affordable for everyone, the factory must still be able to produce. The builder of Palo Alto has hard to find his rhythm. He has just reached the point its objectives, at the beginning of this month of April.