Tesla Hits Road Block in China

Published By : 30 Sep 2014 | Published By : QYRESEARCH

Tesla’s statement to considerably increase sales of its cars in China could prove to be a tougher task than previously imagined. While the company has managed to boost sales in the U.S. with its Model S sedan, the challenges they face in China appear far more complicated.

Dan Hsu, a Tesla executive in China, said the company wants to replicate its successful American strategy in China. It wants to see similar sales records as it has in the U.S. in the past two years.

Tesla Motors produced only a few thousand units in its launch year in 2012. The Palo Alto-based carmaker has since gone ahead to sell more than 22,000 units of the Model S in 2013. Tesla hopes to reach 35,000 deliveries this year with the help of international shipments. They have expressed to achieve that through the giant Chinese automobile market.

Tesla faces a large number of obstacles in the course, the largest of which is the lack of sufficient charging stations’ infrastructure. The company fears this could essentially cap their delivery rates in China.

A.T. Kearney, a Chinese consultancy firm, released a statement last month where they mentioned that the lack of charging stations was the prime reason consumers still preferred gasoline-powered vehicles over electric vehicles.

Other issues that Tesla Motors faces are late delivery dates for overseas customers, non-availability of space to install personal charging points at home, and compliance and approval complications from property management companies. Experts believe that since most Chinese consumers live in apartments and shared complexes, there is little or no feasible space for them to install enough personal charging stations in their own homes.
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