design and engineering center Tesla will be one of the key projects in Beijing this year, the South China Morning Post reported, citing a city government report.
” said David Zhang, an auto industry expert at North China University of Technology “Tesla has every reason to increase investment in China amid strong vehicle sales in the country, Making Chinese-style cars for the Chinese is a good idea, and this is clearly the driving force behind the company’s China strategy.”
In January 2020, Tesla said it would establish a design center in the mainland, one of the US automaker’s largest markets, to better serve customers. The announcement comes just a month after Tesla began operations at Gigafactory 3 in Shanghai, the company’s first factory outside the US. Construction of the new design and manufacturing center will begin this year, but other details such as investment and opening date were not provided.
Excluding the Model 3 and Model Y exports made in Shanghai, Tesla sold 321,000 vehicles in the mainland last year, 117% more than in 2020. The factory is based in the Lingang free trade zone. The only wholly foreign-owned vehicle assembly line in China. Tesla is the leader in the premium electric vehicle segment of the world’s second-largest economy, because of its high-tech features.
Tesla is not the first foreign automaker to set up a design center on the mainland. In 1997, General Motors established the Shanghai-based Lien A Automotive Engineering Center, to design and develop vehicles specifically for the world’s most populous market. In 2009, China’s auto industry overtook the US as the world’s largest vehicle market and has held that title ever since.
Over the past two years, new energy vehicles (NEVs) have emerged as the growth engine for China’s auto industry, fueled by Beijing’s ambitions to become a global leader. demand for the future of digital transformation in modes of transport. China reports sales of 2.99 million NEVs in 2021, including pure electric vehicles, hybrids, and fuel cell cars, up 169% year-on-year. Vehicle Tourist Association, NEV sales are expected to reach 5 million units this year.
