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Tesla Dominates Hong Kong Luxury Automobile Market

30 Nov

Tesla Dominates Hong Kong Luxury Automobile Market

Tesla’s Model S is highly demanded in Hong Kong as the region offers a tax waiver to the automaker.

Tesla Motors is performing well in Hong Kong. With its thin streets, small residential areas and huge population, the Chinese special administrative region was not made for vehicle ownership. Yet the automaker’s distinct Model S is working well there. The powered automobile is now quite popular, whether stopping at traffic signals in the crowded Central District, moving up to Victoria Peak, or driving down to Shek O.

The government has helped Tesla. In an attempt to cut down the levels of pollution, Hong Kong imposes heavy taxes on newly listed vehicles – in majority of situations by more than double the sticker price of the automobile. Such taxes have not been imposed on powered automobiles for the last one and a half decade.

Tesla news affirmed that previously powered vehicles launched in Hong Kong suffered from lower levels of sales due to the same factors that were responsible for their failure elsewhere: lack of powering infrastructure and generally lower levels of battery life.

The sales of Model S have boosted in past two years in one of world’s majority of the modern powered auto markets (three years ago, the region’s best-selling vehicle was the German car, Mercedes E Class). 40-year-old director of Tesla’s investment company, Song Wong, told Quartz, “I think the critical driving force in Hong Kong is still the tax waiver.”

The Mercedes A 180 FL’s sticker price is $314,000. A tax worth $186,500 is imposed on it. After imposing the tax, this vehicle is offered for $500,500. The Mercedes E 200 Premium Edition’s sticker price is $564,000. A tax worth $506,100 is imposed on it. After imposing the tax, this vehicle is offered for $1,009,500. Similarly, Model S70 D’s sticker price is $619,000. Unlike other vehicles, this vehicle is not taxed so it is offered for $619,500.

Tesla news today revealed that the region’s tax exemption on powered vehicles is much more generous than that of Norway, where lucrative benefits also played a role in fuelling Tesla’s business. Electric vehicles’ customer registrations have increased accordingly in the past two years in Hong Kong. In 2015, one could witness 2000 new electric cars on the lane.

Last year almost 900 EVs were registered in region. Tesla Motors news affirmed that the company refused to disclose sales figures for region, citing the policy of the company. A powered vehicle fans group Charged.hk stated there were 2279 powered automobiles on the lane, and 70% of them belonged to Tesla.

Electric vehicles now make up to about 3% of new automobile registrations in Hong Kong. This might be apparently low, but that is high when a comparison is made with markets of developed regions.

The small size of the region might also play a role in boosting sales of electric vehicles. Tesla’s Model S is capable of travelling over 250 miles (about 400 kilometers) after being charged once. That restriction might worry motorists in bigger countries, but the size of HK’s road is only 2100 km so “range anxiety” is not such an important issue.

 

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Posted by on November 30, 2015 in Technology, Tesla Motors

 

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