US based electric car maker Tesla has managed to beat its jinx of not being able to deliver cars on time as it delivered m\Model 3 cars in China slightly ahead of the schedule promised. The company hopes that this would help it to revive the falling sale which has been hit by the US china trade war.
In order to counter the increased import tariffs on US cars in China, and to make its Model 3 more affordable for consumers in the Chinese market, the California-based car maker had already reduced prices and included a cheaper Model 3 variant to its portfolio for US made cars for China.
Tesla held a delivery event in Beijing on Friday which “marked a significant milestone for the market”, said the U.S. luxury electric vehicle in a statement.
Earlier, the company had predicted that it would be able to start delivery of cars into China only by March this year. China is the largest market in the world for auto and is also the fastest growing market for green cars. However, the market, for the first time in over two decades, saw a contraction in 2018.
Tesla said hat those Chinese customers who had placed orders before the end of 2018 would be the ones who would be the first to receive the cars. Those consumers who had placed orders for Model 3s in 2019 would get their delivery after March.
Alan Kang, an analyst at LMC Automotive, said that amid increasing completion, “I see its earlier-than-expected delivery as an effort to try and seize the market as quickly as possible”.
“Many of its potential customers will not only be considering Tesla’s Model 3 but also other electric car models like Jaguar’s I-PACE or that from Audi and Mercedes-Benz,” the Shanghai-based analyst added.
Tesla had been hit hard by the Chinese tariffs on cars imported from the US which the Chinese authorities had increased to 40 per cent in July amid the trade tensions in addition to a contraction in the Chinese auto industry because of a slowing economy. Since then however, the additional tariffs have been reduced by 25 per cent and the current import tariffs on US cars is 15 per cent.
Tesla does not manufacture any car in China and all of the cars it sells here are manufactured and then imported from the US. In recent months however Tesla has announced the construction of a factory in Shanghai, China for its Model 3s during the initial period which would help it to cushion the impact of the trade war and import tariffs.
There were some issues for Tesla however in its home country just a day before the before-time delivery in China. The endorsement of Tesla’s Model 3 was withdrawn by an influential U.S. magazine, Consumer Reports, allegedly because of reliability issues.
(Source:www.indiatimes.com)
In order to counter the increased import tariffs on US cars in China, and to make its Model 3 more affordable for consumers in the Chinese market, the California-based car maker had already reduced prices and included a cheaper Model 3 variant to its portfolio for US made cars for China.
Tesla held a delivery event in Beijing on Friday which “marked a significant milestone for the market”, said the U.S. luxury electric vehicle in a statement.
Earlier, the company had predicted that it would be able to start delivery of cars into China only by March this year. China is the largest market in the world for auto and is also the fastest growing market for green cars. However, the market, for the first time in over two decades, saw a contraction in 2018.
Tesla said hat those Chinese customers who had placed orders before the end of 2018 would be the ones who would be the first to receive the cars. Those consumers who had placed orders for Model 3s in 2019 would get their delivery after March.
Alan Kang, an analyst at LMC Automotive, said that amid increasing completion, “I see its earlier-than-expected delivery as an effort to try and seize the market as quickly as possible”.
“Many of its potential customers will not only be considering Tesla’s Model 3 but also other electric car models like Jaguar’s I-PACE or that from Audi and Mercedes-Benz,” the Shanghai-based analyst added.
Tesla had been hit hard by the Chinese tariffs on cars imported from the US which the Chinese authorities had increased to 40 per cent in July amid the trade tensions in addition to a contraction in the Chinese auto industry because of a slowing economy. Since then however, the additional tariffs have been reduced by 25 per cent and the current import tariffs on US cars is 15 per cent.
Tesla does not manufacture any car in China and all of the cars it sells here are manufactured and then imported from the US. In recent months however Tesla has announced the construction of a factory in Shanghai, China for its Model 3s during the initial period which would help it to cushion the impact of the trade war and import tariffs.
There were some issues for Tesla however in its home country just a day before the before-time delivery in China. The endorsement of Tesla’s Model 3 was withdrawn by an influential U.S. magazine, Consumer Reports, allegedly because of reliability issues.
(Source:www.indiatimes.com)
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