Tesla's Blowing It In China. Here's What Elon Musk Must Do
【Summary】People’s Republic is now the world’s number one market for electric vehicles and by 2018, it will be the world’s largest market for luxury cars.
China's EV and plug-in electric sales are doubling to 600,000 sales in 2016, twice the U.S. level.
National and local governments offer EV buyers lavish rebates of up to $15,000 per car.
This year, the Germans alone will sell more than 1 million cars and SUVs priced over $50,000. Volvo, Cadillac andwill each reach 100,000 sales.
The Tesla Model X arrives at just the right time. China SUV and crossover sales are booming, up 33%, and now account for almost 40% of total sales. TheCayenne, BMW X5 and Q7 are everywhere on Shanghai and Beijing streets.
markets"in China: the government and the consumer. Before Tesla can win with consumers, it needs the blessing of the government. Giving bro hugs to government officials is nowhere to be found in Elon's new master plan. But it's a must in China, like it or not. Tesla needs to declare far and wide that China is the undisputed leader in electric vehicles. Tesla is simply there to support the worthy cause.Understand that here are two "
To win in China, you must build your product in the Middle Kingdom. Mercedes, BMW, Audi, Land Rover and Cadillac all do. Tesla imports from California. China clobbers imports with punishing import duties and fees. A Model S that costs $85,000 in America runs $123,000 in China. Building a plant also gives the Chinese confidence that Tesla is committed to the People's Republic, an important perception. Tesla is reportedly hunting for a production site but needs to move faster.
Chinese Tesla owners I spoke to love their cars, but they feel shortchanged when it comes to service and personal attention. Maybe it's Tesla's aloof culture that leaves them feeling cold. Whatever the cause, Tesla must match or better the almost reverential treatment that Chinese luxury car buyers now get from likes of Porsche, Mercedes and Land Rover.
Billionaire Chinese investors are backing new companies to develop Tesla killers. Leading names include Faraday Future, Karma, Future Mobility, NextEV and Atieva. They've hired away key Tesla talent and they'll start delivering products as soon as 2018. No doubt the Chinese government will look more favorably on their own sons once they are ready for market. Tesla must move quickly to make the most of its lead in technology and design.
Lucky for Tesla, many potential Chinese customers can be pre-sold to right here in America. There are tens of thousands of wealthy Chinese in America every day — shopping, studying, working and playing tourist. Chinese businesses invested $18 billion into the United States in the first half of 2016, an all-time record. Chinese now account for one-third of all international students in America. They have the bucks. Get them into test drives in America, which will lead to more orders when they get back home.
resource from: http://www.forbes.com
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