Tesla Motors to Open New Stores as Demand for New Energy Vehicles Increases
US based electric carmaker Tesla Motors Inc. is planning to open around ten new stores within the year in China, as the country became its second largest market following the US for the first quarter of 2016 showing a growth rate of more than 300 percent. President of Tesla China Zhu Xiaotong said that the company is confident on their future in Chinese soil and the development of the business will be sustainable since the last few years saw a change in the public perception of using electric vehicles in China.
The nation’s interest on the Model S a few years back was due to the curiosity of the people, now Tesla buyers are rational and want a car that can fulfill their traveling and driving needs. Transformation on this level is crucial as demand is starting to be come more sustainable. Paired with a strong policy support, new energy vehicles sector recorded its highest growth last year as the country produced 340,471 new energy vehicles and sold 331,092 showing an increase of 340 percent from the previous year. Globally the company delivered more than 14,000 vehicles during the first quarter up by 50 percent year on year and is now aiming to deliver 80,000 to 90,000 vehicles a year globally.
The company’s confidence can be thankful for the Chinese market and to a strong government support as both central and local governments are giving preferential policies in purchasing new energy vehicles. an example of suc policies can be seen in Shanghai were free license plates are offered to new energy vehicles instead of bidding for one for gasoline vehicles. recently Tesla also announced that several of their car models are approved for free license plates by the Shanghai transportation authority. Tesla is also planning to construct a factory in China in the next three years as part of the company’s vision of giving sustainable energy vehicles that are affordable to the general public.