Automotive News   |   Automotive News Europe   |   Autoweek   |   Automobilwoche

Automotive News China Newsletter
Register our free newsletter, sent each Monday and Thursday

     Automakers   Suppliers   Auto Show   Comment   Car Cutaway   Newsletters   Press Releases   Register for Newsletter
  Contact Us:   Editorial   Advertising   Subscription Information   |   About Us   Media Kit
Home >> Automaker Email this story   Print this story
 
China agrees to Tesla remedy for Model 3 customs dispute, report says
Reuters | 2019/3/8

SHANGHAI -- China's customs authorities have accepted Tesla Inc.'s plan to remedy problems with the clearance of imported vehicles, a source familiar with the matter told Reuters on Tuesday.

Caixin,  a Chinese financial publication, reported earlier that authorities had suspended customs clearance for the electric carmaker's Model 3 sedan, citing various irregularities, including improper labeling of the vehicles.

Tesla blamed a misprinted label for the issue.

"We have already reached a resolution with Chinese customs, and we are working closely with them to resume clearance procedures on these vehicles," a Tesla spokesperson said in a statement.

"Sales of Model 3 in the country are not impacted, and we continue to deliver Model 3 vehicles that have already been processed."

Making inroads in China, the world's largest electric vehicle market, is crucial for the Silicon Valley carmaker as it seeks to offset softening demand in the United States and convince investors of its ability to become consistently profitable.

"Selling into China has clear hurdles and this is a reminder of the pitfalls when betting on growth in the region," Wedbush Securities analyst Daniel Ives said.

CEO Elon Musk has played up the support Tesla is getting from Chinese authorities as the company invests in the country's first wholly foreign-owned car plant in Shanghai, due to come online later this year.

Until then, Tesla has to import U.S.-made cars with substantial customs duties, putting it at a disadvantage against locally-made, government-subsidized EVs from rivals such as Nio Inc., Byton and XPeng Motors.

Stepped up inspections
Caixin said the Shanghai customs authority told Tesla in an official notification on March 1 that it should not sell or use Model 3 vehicles that had already been cleared.

The authority has also urged inspectors at all ports responsible for importing vehicles to step up inspections of other imported Tesla models and suspend their release if similar problems are uncovered, the report added.

A total of 1,171 Model 3 sedans arrived at north China's Tianjin Port, after 84 such cars were imported via the port in February, China's state news agency Xinhua reported on Tuesday.

The first shipment of Model 3 cars arrived in Shanghai on Feb. 22, and deliveries started at the end of the month, according to local media reports.

Tesla's Shanghai factory, made possible by raising funds from local banks at low interest rates, plans to start making Model 3s at the end of this year and eventually produce cars at a rate of 10,000 per week.

Tesla has cut prices in China several times in the last few months to make its cars "more affordable" and revive sales hit by Sino-U.S. trade tensions.

To cut costs and support its drive to generate profit, Tesla last week launched a $35,000 version of its Model 3 sedan and said its global sales would now be online-only. 


Related Stories
  • China customs lifts suspension on Tesla Model 3 imports
  •     --Published:2019/15/3
     
  • Tesla in talks with CATL for big battery order, report says
  •     --Published:2019/12/3
     
  • Tesla secures major bank loan for Shanghai plant
  •     --Published:2019/12/3
     
  • Tesla rushes Model 3s to China before trade truce expires
  •     --Published:2019/15/2
     
  • Tesla launches sales of lower-priced Model 3
  •     --Published:2019/5/2
     
  • Musk: $500 million enough to launch output at Tesla's Shanghai plant
  •     --Published:2019/1/2
     
  • Everybody wants to be the next Elon Musk (at least in China)
  •     --Published:2019/18/1
     
  • China wants Elon Musk to help promote stable ties with U.S.
  •     --Published:2019/11/1
     
  • Tesla breaks ground at Shanghai Gigafactory to launch China push
  •     --Published:2019/8/1
     
  • Tesla to start Model 3 sales in March
  •     --Published:2019/8/1
     
  • Tesla seeks bids for China Gigafactory construction
  •     --Published:2018/7/12
     
  • Tesla cuts prices to ease hit from tariffs
  •     --Published:2018/23/11
     
  • Tesla starts taking Model 3 orders in China
  •     --Published:2018/20/11
       
     
     

    Our Newsletter Editions
    Automotive News China produces two email newsletters each week. You can sort your news by the articles highlighted in each of our newsletters here.

    Select your newsletter     

     
     

    Automotive News China
    Room 1303, Building 2, Lane 99, South Hongcao Road,
    Shanghai 200233
    Telephone: 86-139-1851-5816
    Fax: 86-21-6495-0895
     
    Home | Help Center | About Us | Privacy Policy | RSS
    Entire contents © Crain Communications, Inc.
    Use of editorial content without permission is strictly prohibited. All Rights Reserved.
    ICP06057291