U.S. electric vehicle maker Tesla saw its sales in the Chinese mainland reach a record high, despite recording a slight drop in its global deliveries in 2024. Our reporter Zheng Chunying explains the reasons behind the U.S.'s EV maker's expanded presence in China and what makes a win-win scenario possible.
ZHENG CHUNYING Beijing "It was a record-breaking year for Tesla, as they sold over 650,000 cars in China – that's an 8.8 percent increase compared to last year and it's even more impressive given that the company's annual global deliveries dropped for the first time ever. For the American EV manufacturer, China is not only a key market but also a production base and regional sales hub. With a capacity to produce over 750,000 vehicles per year, Tesla's Shanghai giga factory accounted for half of its annual output."
ZHENG CHUNYING Beijing "Allowing foreign automakers to come in and own their own factory and operate domestically in China was huge for Tesla. Since the factory began production in 2019, China has been vital to Tesla's success. So much of their business hinges on how well they do in the world's second largest economy."
TAO LIN Vice President, Tesla China "Over 95 percent of our supply chain is in China, and 99.9 percent of our employees are local hires. We find that local teams are highly efficient, and local suppliers respond quickly and efficiently. At the same time, our local team also does an excellent job in cost management and control. That's why I think Tesla has done a great job when it comes to localization, which also contributes to global development."
ZHENG CHUNYING Beijing "Meanwhile, government policy support for Tesla has also brought benefits to China. The Shanghai Gigafactory is a perfect example – empowering the development of Shanghai's advanced manufacturing industry."
SUN XIAOHE Chief of Finance and Trade Division Administrative Committee of the Lingang Special Area "After Tesla entered the Chinese market, our overall new energy battery technology, our new energy vehicle software technology, and the whole car factories have made rapid progress. There is no doubt that Tesla, a foreign-funded enterprise with very strong technical strength, has given us some help. In addition, Tesla has a great role in promoting local employment, as well as the training of blue-collar senior technicians in our country."
ZHENG CHUNYING Beijing "While Tesla was celebrating its impressive sales in China, its Chinese competitors and counterparts – BYD, NIO, XPeng, and others – also achieved remarkable sales performances both domestically and internationally. The NEV penetration rate, a gauge of popularity, climbed to 51.1 percent in the domestic market, making China the world's largest electric-car market. And in this remarkable EV boom, Tesla also had a role to play."
ZHENG CHUNYING Beijing "So, one would think, this is a perfect example of where China and the U.S. can meet each other halfway. An industry they're both engaged in, an industry where opportunities for cooperation are plentiful. And Tesla is not an isolated case. Currently, over 70,000 American companies are investing and operating in China, with annual sales exceeding $600 billion. If the world's two largest economies opted to come together rather than confront one another, then we would be seeing more success stories like the ones just mentioned. It's these stories that should define relations. And going beyond that, it should be about bringing tangible benefits, to both peoples."