Tesla Company According to a Reuters report on Monday, analysts estimate that Model Y electric vehicles will help boost sales and become a major disruptor in the country’s auto market in 2021.
what happened: China is the world’s largest car market. This month, it launched a locally-produced Y-type sport utility vehicle at a price of 339,900 yuan ($52,376), which is less than one-tenth of a gasoline-powered luxury car with similar market positioning.by Daimler (OTC code: DDAIF), Bavarian Motor Company (OTC code: BMWYY), and Volkswagen AG (Reuters: VWAGY), according to Reuters.
Cui Dongshu, secretary general of the China Passenger Car Association (CPCA), told Reuters: “Pricing will disrupt the traditional premium car market and break the traditional notion that the cost of electric vehicles (EV) should be higher.”
See also: Tesla will launch a $25,000 EV sedan in China in 2022
According to CPCA data, Tesla̵
Why it matters: Reuters pointed out that Tesla’s Model Y pricing will set a benchmark for automakers to beat and drive demand.
The ongoing pandemic has overturned the sales of new energy vehicles (NEV). The market is said to have grown by 8% to 1.3 million vehicles in 2020, lagging behind the 2 million annual sales target set by the Chinese government.
The China Association of Automobile Manufacturers and other analysts predict that sales of new energy vehicles-including electric vehicles, plug-in hybrid vehicles and hydrogen fuel cell vehicles-will increase by 30-40% this year to nearly 1.8 million vehicles.
The government’s extension of electric vehicle subsidies for two years will also drive demand this year, because Beijing hopes that new energy vehicles will account for 20% of car sales by 2025 instead of the current 5%.
Nio Rivalry: Tesla, other foreign companies and domestic competitors NIO (New York Stock Exchange: NIO), Xpeng Inc (NYSE: XPEV) is increasing production to meet expected demand.
Nio launched its first sedan et7 at the Nio Day event on Saturday. The company’s chief executive, William Li, said this week that the automaker can use other brands to produce cheaper mass-market cars.
Li Shufu clarified that the electric car manufacturer does not think its new car will directly compete with Tesla, but according to Automobility Ltd. CEO Bill Russo (Bill Russo), NIO is occupying China’s electric vehicles The market is quite large and advantageous.
Russo told CNBC on Monday that the price of et7 is quite “competitive” with Tesla’s Model S and is a “declaration of wish” by the automaker.
Price action: Tesla shares closed down by nearly 7.8% on Monday to $811.19, and rose 0.9% in after-hours trading.
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