I think it's inaccurate report again. Basically the Chinese government representative (Bo Su) clarified the new energy car policy document yesterday. He emphasized that government subsidy won't apply for imported cars as usual, but in the same document waiving sales tax for ALL new energy cars is still there and Bo Su didn't elaborate on it. As a side proof, I went to Tesla Chinese user forum, nobody is talking about this thing and I assume there is basically NO change.
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Government subsidy, i.e. reduce the final sales price to customer from subsidy, is different thing from waving sales tax. I think Chinese media reported it accurately that Tesla (imported cars) will be excluded from government subsidy ONLY. Actually it brings an interesting question that if FREE license plate is compliant with this policy? I think it's kind of grey zone because, like waiving sales tax, free license plate won't reduce the sales price, instead it reduces the final cost when buying a car.
Maoing: It is great to have you as part of this forum as you not only can translate Chinese but you can also help us with the actual intent of the rules and regulations and cultural differences we may not understand.
Raffy.Roma
Rome (Italy)
JRP3
Hyperactive Member
For some reason an old article has been linked again: http://www.engadget.com/2014/07/25/tesla-in-china
Older source article: http://chinaev.wordpress.com/2014/0...on-on-the-way-for-chinese-customers-and-more/
Older source article: http://chinaev.wordpress.com/2014/0...on-on-the-way-for-chinese-customers-and-more/
Such an interesting and educational thread, especially due to Maoing's extraordinary contributions, as well as others. The China market potential is huge for Tesla, and obviously material to its future. Otoh, the "demand" is almost entirely based on special favors granted Tesla, the characteristics of the Model S, and the current lack of competition......some of which could change or be withdrawn. In one sense, it highlights the extraordinary short-sightedness of major auto companies slow- or non-adoption of BEV products. Although, in another sense, the smaller cars currently available in the US, Europe and Japan may better serve the needs of Chinese buyers (but no luxury or prestige factor for the elites who are buying MS).
In other industries, it has been common in the past to have identical manufacturing plants suddenly constructed in record time while foreign/JV plants awaited approval (with full plans included in the approval filings). Tesla has a tight rope to walk in preparing for the long-term in China.
In other industries, it has been common in the past to have identical manufacturing plants suddenly constructed in record time while foreign/JV plants awaited approval (with full plans included in the approval filings). Tesla has a tight rope to walk in preparing for the long-term in China.
RobStark
Well-Known Member
The only special favor Tesla qualifies for is special EV license plates in Shanghai. Not in Beijing or anywhere else. I think Shanghai is angling for the Chinese Tesla plant.
Tesla pays the maximum import tariff of 25%. It does not qualify for the purchase tax exemption,only for domestically produced EVs.
Of course Tesla is targeting the Chinese elite and much cheaper EVs produced by the larger players would find a much bigger audience in China.
Of course the major auto companies "could" make a a direct competitor to Model S or Model 3 but they are at least 4 years behind. If they want to catch up they need to invest in battery capacity yesterday. And Tesla is not standing still.
Elon has corrected this misconception from the media, by the way. The sales tax exemption DOES apply to cars produced outside China, he said in the conference call. The only thing they need to adapt to, are the recently announced new Chinese charging standards, in order to get the 10% waiver.
=> Tesla Model S 85 would then cost about 670.000 RMB in China, which is almost half the price of BMW 6 series Gran Coupe (starting at about 1.200.000 RMB) or an Audi S7 (starting at about 1.300.000 RMB) and about 50% lower priced then a comparable Mercedes CLS (about 950.000 RMB). ...I'm just wondering how Chinese customers in that segment think about those huge differences in price?
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Agreed. However, there are always some people that equate paying a higher price (being able to afford a higher price) with status. I think TM is doing the right thing and eventually will be the biggest player in the luxury car market in China.
I'm monitoring the July import number closely, but it's not available yet.
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Tesla trademark issue resolved peacefully in China. I searched in google, this news not hit english media yet. Basically the "original" Tesla trademark owner in China gave up the ownership for "TESLA" and it didn't seem TM paid money to resolve the issue. This is another sign of how Chinese government is supporting TM, free license plate, waive purchase tax, trademark issue settlement, and fast expansion in both service center and super charger front.
http://tech.163.com/14/0806/05/A2UMFGDD000915BF.html
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Tesla trademark issue resolved peacefully in China. I searched in google, this news not hit english media yet. Basically the "original" Tesla trademark owner in China gave up the ownership for "TESLA" and it didn't seem TM paid money to resolve the issue. This is another sign of how Chinese government is supporting TM, free license plate, waive purchase tax, trademark issue settlement, and fast expansion in both service center and super charger front.
http://tech.163.com/14/0806/05/A2UMFGDD000915BF.html
Maoing - Thank you for always having breaking news for us. Your interpretation of government support means far more than the simple settlement of the suit.
Maoing...Thanks....The 'settlement' showed up on Bloomberg: http://www.bloomberg.com/news/2014-...ably-end-china-trademark-spat.html?cmpid=yhoo The article states that the 'Chinese Government helped lay the ground work for the settlement' :biggrin: I would have liked to have been the 'fly on the wall' to hear that conversation!
Whether or not Tesla's "fair price" stance catalysed this, it's interesting that China is going to punish other luxury auto makers for overcharging
http://uk.reuters.com/article/2014/08/06/uk-china-autos-antitrust-investigation-idUKKBN0G604T20140806
http://uk.reuters.com/article/2014/08/06/uk-china-autos-antitrust-investigation-idUKKBN0G604T20140806
chickensevil
Active Member
I think based on the writing and timing of this that Tesla's actions have clearly made an impact. Even if they weren't the sole reason for the investigation it must have given the government some of the evidence they needed.
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