TESLA Inc. bucked the downturn in the world’s biggest electric vehicle market last month as its new car registrations in China soared 14-fold, giving the Model 3 maker some momentum as it prepares to begin deliveries from its Shanghai factory. Registrations of Tesla vehicles climbed to a five-month high of 5,597 in November, compared with 393 a year earlier, according to the China Automotive Information Net, which gathers and reports car industry data. Fears that China, the world’s biggest auto market, would raise tariffs on U.S.-made cars in December probably helped bolster sales, according to Bloomberg Intelligence auto analyst Steve Man. But that threat subsided last week after China and the United States agreed to the first phase of a broader trade agreement. The figures stand out because the Chinese electric car market has been shrinking for five months straight. Still, billionaire Elon Musk’s success in the country will largely hinge on how soon he can get Tesla’s new Shanghai plant, its first outside America, up and running so the company can lower prices and spur demand for its cars. There’s much at stake for Tesla in China as the country accounts for about half of the world’s electric vehicle sales and represents the company’s biggest market after the United States. Tesla’s China-built Model 3s are set to start at about US$50,000, slightly cheaper than imported versions. The company may lower the locally built model’s price by 20 percent or more next year as it starts using more local components and reduces costs, according to sources familiar with the matter. Registrations are among the few high-frequency indicators of demand for Tesla’s cars in China, as the company doesn’t report monthly sales. But registrations and sales figures don’t always end up matching up.(SD-Agencies) |