Tesla wants to build a factory for ensuring that its vehicles become more competitive in the Chinese auto market
Tesla Motors will finally be manufacturing cars in China, including its first car for the masses, Tesla Model3.
CEO Elon Musk recently stated in an interview to CNN, “It will eventually be made in China, If it was possible to do local production in China sooner, we would, but I think it is going to be close to three years before we can achieve that outcome.”
At the moment, Tesla isn’t eligible to get local incentives in the second largest economy, so all automobiles delivered in the country are those on which the charged import duty is very high.
Mashable reported that the automaker eagerly wants to get rid of the high import duties charged against vehicles imported into the country. Avoiding the charged taxes and shipping costs would improve the competitiveness of Tesla vehicles in China.
Nevertheless, once the company starts its production in China, it will be eligible for incentives that will help let it to cut down its selling cost in the region. It must be noted that manufacturing in the country will be added to Tesla’s production operations in the United States.
The Chinese region is a huge market for the electrically powered car maker to be in because of the increasing demand of environmental friendly vehicles.
“I think there is an understanding by the Chinese government that electric cars are very important to the future,” Elon stated.
The Model 3 will become Tesla’s first car for the masses offered at a cost of around $35,000. It is probable that the organization will probably reveal the car in 2016, but it is not expected to be produced until 2017.Elon told in the interview that he’s pleased with how the organization’s first mainstream vehicle is coming along.
But when Tesla launched its more affordable vehicle to the auto market, it would be facing more competitive situation.
Earler this month, General Motors launched a production prototype of its Chevrolet Bolt electric vehicle worth $30,000. GM stated the Bolt would be produced in the later part of this year and will be having a range of over 200 miles per charge, similar to Tesla vehicle.
Elon does not look worried, though. If anything he’s excited about, is the larger number of automotive organizations manufacturing electric vehicles.
Alongside hopes of a factory in the country, Elon also stated the Model X crossover is going to be launched in Hong Kong this year. However, the government of Hong Kong and Tesla recently had a clash when legislators compelled the automaker for disabling Auto Lane Change and Auto Steer in the semi- autonomous technology’s Autopilot suite in Tesla Model S vehicles currently on the region’s roads.