Source: Nikkei Chinese website
Author: Tomoda Tomoi, Ruoshan Pengzi
Pure Electric Vehicle (EV) CEO (CEO) Elon Musk, CEO (CEO), a large company in the United States, visited China after two years.In the context of the continued opposition between China and the United States, it shows the attitude of attaching importance to China.Musk held talks with a number of senior government officials, and seemed to be in a honeymoon relationship with China.Tesla considers exports and hopes to enhance the Shanghai plant, and China is worried about the excessive competition in the pure electric vehicle market in the country and adopt a cautious attitude.Can Musk's lightning visit to China change the situation?
Musk arrived in Beijing on May 30, and held talks with a number of Chinese officials on May 31.On June 1st, he visited the Shanghai factory of his own company and embarked on his return on the morning.
shows "Opponent"
On May 30, Musk held talks with State Councilor and Minister of Foreign Affairs.According to the Ministry of Foreign Affairs of China, Musk said that the interests of the United States and China were inseparable.Oppose the "off -hook and break chain" and are willing to continue to expand business in China.
China also welcomes the head of American representative company Tesla."Musk agreed that US -China relations are not a zero -sum game." The Ministry of Commerce of China said on the 31st in the announcement of the Minister of Commerce Wang Wentao and Musk on the 31st.
According to Reuters, Musk also saw Deputy Prime Minister Ding Xuexiang, who seemed to have a close relationship with the Chinese government.However, around Tesla's business strategy in China, there are subtle differences between the two sides.
This is the view of Tesla's expansion of production capacity.For Musk, it is a top priority to increase the output of the Shanghai plant.In an interview with the US media in mid -May, "the production (expansion speed) of the Shanghai plant cannot keep up with demand. This has become a restriction on our business in China."
Tesla provided information provided by investors show that as of the end of March 2023, the actual production capacity of the Shanghai plant exceeded 750,000 vehicles.As a single factory, it is the company's largest factory.
The actual shipments in 2022 reached 710,000 units, accounting for more than half of the global whole.As the first Shanghai factory of Tesla's overseas production base, it is not only facing the huge Chinese market, but also as a "export hub" to undertake the task of supplying EV from all over the world.It is also the factory to supply EV to the Thai market.
"The most efficient factory here, the best quality car", Tesla's video released on China's "Weibo" shows that when Musk visited the Shanghai factory late at night on June 1A large number of employees who are still gathered in the evening said.More than 95%of the Shanghai plant purchased in China, and the Chinese supply chain, which is popularized in EV, was used.
BYD shows the sense of existence
Looking at China, the sales of large companies BYD (BYD) have grown rapidly, and they have become Tesla's opponents and are showing a sense of existence.In 2022, BYD surpassed Tesla.
China ’s Zhejiang Business Securities estimates that BYD may increase the capacity of 2.9 million vehicles in 2022 to 4.3 million vehicles to 4.3 million vehicles.To fight against, Musk hopes to increase production in China as soon as possible.
But there are opinions that the Chinese government as the other party is not fully welcome.
About 200 new energy vehicle manufacturers in China have launched fierce competition.IT (information technology) companies have also joined one after another, in a state of excessive competition.The new energy vehicle market reached 6.88 million units in 2022, and car companies are continuing fierce competition.
Earlier this year, a fierce price competition occurred with the opportunity of the new energy vehicle sales subsidy and Tesla's price reduction.Tesla adopts a direct sales method, and at the same time the spontaneous production rate of components is costly competitive.With the popularity of consumers as the background, it also has a high pricing ability. Some opinions believe that this is a price war launched to combat competitors.
Chinese automobile industry people said, "Due to excess domestic capacity, the Chinese government hopes that Tesla will actively use the Shanghai plant as an export base. China only wants to allow Tesla to expand production capacity for the purpose of exports."few.
It is reported that before this visit to China, Tesla applied to the official expansion of the Shanghai plant.Perhaps it is hoped that by squeezing time to China in the busy schedule, it shows the attitude of attaching importance to China, so as to pave the way to enhance production capacity.
Tesla has a high popularity in China, but the data collected around vehicles, the military and other restrictions on the use of Tesla cars.Some government facilities do not allow Tesla cars to enter.It is reported that Tesla also intends to launch a driving assistance function called "fully autonomous driving (FSD)" in China. It is inevitable to expand its business in China and discuss on data utilization security.
Touring to China is also a risk to China.In the context of Sino -U.S. Confrontation leading to the continuous decoupling of the supply chain, the United States plans to exclude Chinese batteries and minerals from its own pure electric vehicles.If the same trend expands to countries outside the United States, it will be difficult to effectively use the Shanghai plant as an export base.
It is reported that while highlighting the attitude of attaching importance to China, Tesla also considers the establishment of factories in other countries such as India, which seems to be putting pressure on China.While the EV market is overheating, the advancement and retreat under the water seems to continue.
