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China Daily Website

Low-charge arrival by Tesla

Updated: 2013-09-30 07:06
By Xu Xiao ( China Daily)

New showroom, but just 100 e-cars alloted for China

The large "go electric" logo outside Tesla's showroom in Beijing indicates its ambition in a market that has become renowned for conspicuous consumption of luxury goods of all kind.

And though it is a modest user of energy, the Tesla made in Palto Alto, California has a robust price tag, luxury styling, a trendy reputation and high performance.

Low-charge arrival by Tesla

Tesla's showroom in Beijing. Though trendy in design and high in performance, the luxury Tesla Model S faces challenges winning over Chinese consumers, who value brand prestige over products, said an industry analyst. [Wang Jing / China Daily]

Its variants range in price from $70,000 to $100,000 in the US.

Tesla began taking orders from China in mid-August and its planned allotment of 100 units in the country was quickly oversubscribed.

On Aug 21, Kingston Chang, manager of Tesla Motors China, posted on his microblog that pre-orders for the Tesla Model S can be made by e-mail.

But cars will not be delivered to customers until next year and the price has not been set.

Chang's message said Chinese customers should sign a pre-order agreement and pay a 250,000 yuan deposit.

If customers are not satisfied with the final price, they can ask for their money back.

The first Chinese deliveries will be a fully outfitted Model S.

With import and luxury taxes, it is expected cost up to 1 million yuan - the same price range as the Audi Q7, BMW 7 Series and Range Rover.

Who would pay such a high price for an electric car?

In online discussions, one participant in China said he would consider buying a lower-end Tesla model because the electric vehicle could be a good alternative family car and its styling looks far more expensive than its price indicates.

But he added the price of top-of-the line Tesla Model S might deter consumers , who will turn to a Mercedes-Benz, BMW or Audi instead.

John Zeng, director of LMC Automotive Asia Pacific Forecasting, said the percentage of first-time buyers in China was as 82 percent in 2012, so it is no surprise that a relative few are open to emerging vehicle technologies.

"Although Tesla's products are strong, it will be very hard to attract Chinese consumers who value brands over product in the premium car segment," he added.

The Tesla showroom at a new shopping mall on the bustling east third ring road is not yet open to pubic.

What makes the car even more mysterious is that Tesla Motors China keeps its client list confidential, but fragmented online information indicates what the consumer group might be.

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