Tesla Motors is interested in growing in People’s Republic of China.
Tesla Motors is interested in growing in the People’s Republic of China. Tesla Motors reported that the company’s CEO, Elon Musk, anticipated that Chinese market would contribute to 35% of his vehicle’s global sales in 2014. The CEO’s anticipation proved to be wrong. Market sources stated that the automaker’s sales in the second largest economy in the world had proved to be so disappointing that the company was forced to terminate its two executives within a short period.
Tesla news today informed that the China Automobile Dealers Association has disclosed that the carmaker was able to sell only 2499 vehicles last year. The figure represents only 50% of Model S cars imported into the most populated country. The automaker’s sales in China increased with new Tesla users authorizing 1055 vehicles. It is revealed that the automobile manufacturer is currently formulating strategies to expand its business under the supervision of Tom Zhu Xiaotong, which is heading its operations in the country.
Industry sources suggest that Mr. Zhu has previously worked as the head of charging-network development unit in the Chinese territory. Tesla’s management is planning to solve all market related problems in China. China Southern Grid and State Grid have developed 20,000 battery-charging stations in the region, but these can only power up Chinese vehicles.
To resolve the compatibility issue, the multinational corporation has devised a prolonged plan to build charging stations throughout the country. The company has been developing its own network of powering stations. Tesla Motors news affirmed that it has succeeded in establishing 40 charging stations in 19 cities with 600 smaller charging points situated in the Republic.
Experts stated that the automaker’s user-friendly initiative would not only increase its sales volume in the region but also improve its reputation. The incompetence of the company’s sales staff has contributed to its problems, as they misinformed the Chinese customers.
It is probable that if the technologically advanced automaker succeeds in devising and implementing effective strategies in China, then it would be able to address the concerns of its Chinese users. Industry experts believe that Mr. Zhu’s experience would play a significant role in solving the organization’s problems in the Asian region.
Tesla should now take steps to build and promote its charging network in the country or it would lag behind and fail to dominate the Chinese automobile market. The response of the Chinese electric vehicle users would finally determine the effectiveness of the company’s strategies.
The gigantic market of the Asian giant attracts many businesses worldwide. The introduction of compatible growth and expansion strategies from companies might result in grasping the market share. Tesla is not an exception to this rule. Thus, it should formulate its plans accordingly.
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