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Tesla China launches auto trade-in service
http://www.ecns.cn/business/2014/12-25/148128.shtml
Dec 25th 2014, 03:16
2014-12-25 11:16
US premium electric car producer Tesla Motors Inc has launched trade-in service in Beijing, Shanghai and Hangzhou, capital city of East China's Zhejiang Province, the company said in a statement e-mailed to the Global Times on Wednesday.
The trade-in service of Tesla allows consumers to sell their old cars to dealers and then pay the remainder for a new Tesla Model S, and applies to all auto brands and all vehicle types - gasoline, diesel as well as electric cars, the statement said.
Tesla said that it will cooperate with third-party vehicle trading platforms in order to offer consumers fair valuation for their cars, and Tesla would install charging facilities for free for consumers using the trade-in service.
But so far the service does not apply to second-hand Model S owners, the company said.
Premium auto makers like Audi and BMW have been offering trade-in service in China for years in a bid to boost sales.
"But it is surprising that Tesla has launched such service. It will draw more attention for Tesla," Wu Shuocheng, a senior analyst at consultancy Menutor Consulting Shanghai Co, told the Global Times on Wednesday.
Tesla founder Elon Musk said in April that the company is expected to sell around 5,000 units of cars in China this year.
So far there is no official sales data for China, but news portal aastocks.com said in October that China had imported 3,431 units of Tesla cars in the first nine months this year, citing customs data.
However, Tesla has been troubled with negative publicity recently. The media reported in October that some Tesla owners had put their cars on sale after driving them for only several months and that as a "toy" for China's rich people, Tesla has fallen out of their favor.
"It is still not very convenient to drive electric cars in China. A lack of charging facilities is a problem for all electric car makers," Wu noted.
Also, the California-based firm has seen frequent changes in its top leadership in China.
Its China President Veronica Wu Bixuan, who only served in the position for nine months, is leaving Tesla.
In March, Wu's predecessor Kinston Chang left Tesla after one year of service.
So far, the electric car sector is mainly being driven by the government's supporting policies, according to Mei Songlin, a senior analyst at consultancy J.D. Power China. "Tesla is still making losses and needs large investment. It is still too early to say that Tesla is a success now," Mei said.
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