According to the state-owned media site Paper.cn, Tesla automobiles have been added to the Chinese government’s procurement list for the first time.
Tesla is the only foreign-owned electric vehicle brand listed in the Jiangsu provincial government’s buying catalog in eastern China. Other brands suggested include Volvo, which China’s Geely controls, and the state-owned SAIC.
Tesla Is Now An Official Chinese Government Car
This means that the province’s government agencies and public organizations can purchase them as service vehicles, demonstrating China’s close partnership with Elon Musk’s company.
The development has gone viral on Chinese social media, with some questioning whether the government should consider using foreign cars.
According to an article by the state-owned National Business Daily on Thursday, the Jiangsu government attempted to alleviate such concerns by stating that the Tesla model is “a domestic car, not imported.”
The Jiangsu administration still needs to return CNN’s phone calls. Tesla’s Shanghai-made Model Y was featured in the government’s purchase catalog for 249,900 yuan ($34,377).
China has become an increasingly crucial market for Tesla, accounting for more than half of global EV sales and approximately one-quarter of its overall revenue last year.
However, the US automaker is now experiencing increased competition from Chinese rivals. In the fourth quarter of 2023, BYD overtook Tesla as the world’s largest EV seller. Tesla reclaimed its position in the first half of the year, although it is still neck and neck.
Due to surveillance and data security concerns, Tesla cars had previously been forbidden from accessing some Chinese government and military installations.
Those limitations were eased in April when a major auto organization announced that Tesla’s vehicles met China’s data security standards. Musk made the news the same day he visited Beijing and met with Premier Li Qiang, who praised Tesla as a “successful model” for the US-China partnership.
The European Commission stated on Thursday that it would impose additional duties of up to 37.6% on imports of Chinese-made electric vehicles starting Friday.
Tesla Is Now An Official Chinese Government Car
The tariffs first announced in early June, are considered a necessary step by the EU to stop a flood of low-cost Chinese vehicles constructed with “unfair” government subsidies.
According to the Commission, Tesla, a significant exporter of Chinese-made electric vehicles to Europe, has requested a separate tariff rate calculation. The company is currently subject to an average 20.8% extra tariff as part of a group of enterprises participating in the EU’s probe.
SOURCE – (CNN)
