Tesla Motors might establish its factory in Suzhou, China to meet the local demand for its electric cars and avail EV incentives offered by the Chinese government.
Earlier this year, Tesla Motors CEO, Elon Musk confirmed that the company aims to secure a domestic partner and location for a production plant in China by the middle of this year.
Now we have come to know from a latest report by the Chinese media that the electrically powered car maker is thinking to establish a factory in the Chinese city, Suzhou near Shanghai.
The reports revealed that the government of Suzhou had a meeting on March 13th to discuss upon a venture related to the automaker and officials from the organization toured the region in the following week.
Spokesman of Tesla China refused to share views with the Chinese media. Tesla needs local production capacity in the country in order to avail more electric vehicle incentives, which are often only provided to local vehicles to avoid high import duties.
The less expensive automobile of Tesla, the Model S 70 has the starting price of $103,709(673,000 yuan). In the US, the same vehicle is offered for $70,000.
Any production capacity in the Chinese region would probably exist to meet demand in the Asian region and not for American and/or European export. The company’s Fremont automobile manufacturing plant is equipped with a total estimated capacity of half a million automobiles per year and the automaker intends to just utilize around one-fifth of that manufacturing capacity in the next year.
If the company can produce its automobiles in China, it must getin a position to battle with other automobiles in its niche more effectively and it will be especially significant when Tesla will launch its one and only mass-market automobile, the Model 3, which is more price sensitive vehicle than the organization’s current offering.
A facility in China can be significantly added to the production capacity of the organization, which is located in the Californian city, Fremont, but it also runs a tool and die facility in Michigan as well as its final assembly facility in Tilburg, Netherlands.
The Gigafactory of the automaker in Nevada is also manufacturing battery packs for stationery power storage and it will probably start manufacturing battery cells in late 2016.
In other news, Verge has claimed that ordering the recently introduced flagship sedan of the Swedish car maker Volvo is similar to ordering the US organization’s electric vehicle.
Volvo has introduced a new selling system to unveil its flagship S90 vehicle that to a certain extend mimics the buying experience of a Tesla: one can specify the exact vehicle he or she wants online, then provide it to a “Volvo Concierge”.
Here the role of the “Volvo Concierge” is to finalize the order for the buyer within 24 to 48 hours. A buyer is not directly purchasing the vehicle from Volvo, though as he or she would from Elon Musk’s company- he or she opts for a dealership to have the vehicle delivered to. Yet, it saves him or her from at least 1 visit to the auto dealer.