Tesla Added to Another Government Procurement List in China

Tesla cars have been included on government procurement lists in more Chinese provinces. This time, Model Y has been approved for purchase in the eastern province of Fujian.

The news comes a few weeks after it was reported that Tesla Model Ys had been included on the government procurement list of Jiangsu Province in eastern China. Experts believe that the move by government agencies in different provinces reflects China’s commitment to developing the NEV industry through an open-up policy, according to China Daily. They expect provinces and regions across the country to allow more foreign brands into the procurement process.

“Tesla’s entry into the government procurement process shows a clear attitude of the Chinese government to encourage the development of intelligent connected vehicles, irrespective of whether the manufacturer is Chinese or foreign. As long as they comply with the requirements, they will be included in the government procurement process,” said Sun Xiaohong, secretary general of the car unit of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, a national organization responsible for foreign trade of machinery products.

“The entry into the government procurement process in one province is just the start. More provinces and regions will open up for foreign cars as long as they meet the specified requirements,” Sun said.

Wang Peng, a researcher with the Beijing Academy of Social Sciences, said Tesla and other foreign automakers are likely to land more government orders in the future.

“As China is currently spurring the NEV industry through opening-up, other provinces and regions will follow this trend and gradually allow foreign brands in their procurement process,” Wang said.

According to the Fujian Province government procurement online marketplace, local governments, government agencies and organizations will be able to purchase a range of NEVs for the first time, including Tesla Model Y. This was made possible after Tesla’s locally produced cars were tested and found to comply with China’s data security requirements. The China Association of Automobile Manufacturers (CAAM) announced the news on April 28, the same day that CEO Elon Musk arrived in Beijing for a visit. Previously, the company’s vehicles were under special surveillance by Chinese authorities and were even banned from entering critical facilities such as the military.

The government procurement framework sets criteria for the selected vehicles. For SUVs, the price cap is set at RMB 250,000, with a requirement for an all-electric range of more than 400 km (248 miles). The Tesla Model Y Rear-Wheel Drive (RWD), priced at RMB 249,900 and offering a CLTC range of 554 km (344 miles), meets and exceeds these requirements.

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