Tesla Plans To Sell Budget Models In Korea

04 Jan

Tesla Plans To Sell Budget Models In Korea

Tesla Motors would deliver its budget EVs to offset the effect of sluggish sales in China.

Tesla intends to deliver its latest budget-friendly electric powered vehicles in Korea from 2016 to offset the impact of its sluggish growth of sales in the People’s Republic of China. “Based on our own research on the demand of EVs here, Tesla Motors plans to sell budget models from next year,” an official stated on Wednesday.

Tesla’s Model E would initially be delivered in the region with a proposed retail price of around 42 million won without any subsidies from the environment ministry of the country.

“The budget model will be offered at about 22 million won to local consumers with subsidies, making Tesla products highly-competitive in terms of pricing compared to other models offered by Hyundai-Kia and Renault-Samsung,” the official spoke to the Korea Times while maintaining anonymity.

The decision has been taken according to the organization’s strategy to expand its presence in the local automotive market after the recent opening of a legal office in Korea. Korea is a small automotive market for the company compared to the rest of Asian countries such as China, but industry monitors have indicated that the state has “huge potential” to expand rapidly, supported by the government measures to expand eco-friendly ventures.

A market research firm, EV Obsession, told that 955 electric cars were delivered in the Korean region in the first half of 2015, a rise of 162% on a yearly basis. An analyst believes that the EV producer is following a procedure to resettle its plan for China, and the Korean growth plan focusing on Jeju would prove to be a good litmus examination for it.

Such a low-key approach indicates that the automotive company has not imminently planned to establish superchargers on Jeju, as it is capable of already using established charging facilities. Jeju intends to reduce its levels of carbon emission to zero by 2020.

Tesla’s business growth could threaten major local automakers, as its Model E performs better than competing electric vehicles. For instance, Model E is capable of running 320 kilometers after one charge, while majority of local electric vehicles are able to cover a distance between 120km and 150km because models of electric vehicle maker use expanded batteries.

CAR magazine has released that Mercedes Benz would release the first of four electric vehicles in 2018, as it starts to battle with Tesla. Sources have disclosed the most recent developments: the first car would be introduced in market one year earlier than initially planned, as the BMW tries to compete with Audi and Porsche electric vehicles launching in 2018, the Q6 e-Tron and Mission E.

Elon Musk is ready to take chances to further expand but his management should not neglect any potential hurdle along the path.




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Posted by on January 4, 2016 in Technology, Trending Today


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