Tesla Is Sparking Major Growth in the Chinese NEV Industry

Tesla is working closely with China to develop the NEV market there. The manufacturer will soon also begin construction of a Megafactory. 95% of the company’s supply chain is located inside the country.

China has created a powerful new energy vehicle market that is constantly developing. Tesla, with the assistance of the government, also played an important role in this. The company looks forward to further development together with China, Tesla China President Allan Wang said.

“The Chinese NEV market is growing fast and on a large scale, and almost all automakers in China are talking about their NEV business when it comes to their future development strategies,” he told Xinhua news agency during the China International Fair For Trade in Services being held in Beijing. “Automakers that don’t follow NEV’s lead will be eliminated,” he added.

More and more overseas car manufacturers are working with Chinese NEV and battery makers, Wang said. He noted that traditional automakers also need to collaborate and get support from companies operating in the Chinese supply chain if their presence is to make a difference in the domestic NEV market.

“More than 95 percent of the parts Tesla uses to build vehicles at its Shanghai plant come from Chinese suppliers,” Wang said. “The factory entered into agreements with about 360 domestic first-tier suppliers, and Tesla brought about 60 of them to the international market, and they were subsequently recognized by foreign automakers.”

“Chinese firms involved in Tesla’s supply chain are growing with Tesla because NEV’s core R&D includes many segments, from ideation to assembly,” Wang said. “These Chinese companies will then supply their products to more Chinese NEV manufacturers, creating a supportive environment in which they will help each other.”

In his interview, Wang also said that Tesla would soon start building the planned Megapack factory. He noted that most of the products made there will be exported.

“We are planning to start construction of the Shanghai Megapack battery plant in the near future, and most of the products produced there will be exported,” Wang said.

Previous Article

Tesla’s Giga Berlin Train Officially Launched

Next Article

Lucid Air Midnight Dream Edition to debut at IAA Show

You might be interested in …