Chinese Government Adds Tesla to Purchase List, Boosting Company
Pune, 5th July 2024: In a significant development for Tesla, the Chinese government has included the company’s electric cars in its official purchase list. This decision is part of China’s effort to reduce pollution and promote the use of electric vehicles. The move is expected to benefit Tesla substantially by allowing local governments to purchase its vehicles as service cars for the first time.
China has updated its purchase list to include electric vehicles (EVs) as part of its initiative to reduce pollution. Tesla’s inclusion in this list means that local governments can now buy Tesla cars, such as the Model Y, for official use. This marks the first instance of Tesla’s cars being eligible for government procurement in China, which is anticipated to significantly boost the company’s presence in the market.
The eastern Jiangsu provincial government has taken a lead in this initiative. On June 6, it announced 56 batches of new energy vehicle purchases for use by party, government, and public organizations. Among these, Tesla’s Shanghai-made Model Y and Volvo Cars’ XC40 were the only non-Chinese brands included. The other 54 batches consisted of Chinese brand EVs and hybrids. Volvo Cars is owned by the Chinese automaker Zhejiang Geely Holding Group. However, neither the government nor the media has disclosed the number of Model Y cars to be purchased.
Previously, Tesla cars faced restrictions in certain government and military premises in China due to security concerns. These bans were lifted after the top auto industry association confirmed that Tesla’s data collection practices complied with Chinese regulations. Despite this positive development, Tesla’s deliveries of China-made vehicles fell by 9% in the first half of 2023 compared to the same period last year, partly due to decreased demand for Chinese cars abroad and domestic competition.
The inclusion of Tesla in the purchase list is seen as a significant endorsement by the Chinese government and is expected to enhance Tesla’s market share in the country.
