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Tesla Company China

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Submitted By icemaan
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Tesla
China

Explain your choice of the 3 potential target markets - why these?
• Which issues in the economic, cultural and political environment will the company have to consider when entering 3 new markets you suggested? How are those issues likely to impact?
d. Suggest modes of entry for the new markets.
1.Tesla’s battery recharged with charging ponts. Tesla Motors said it would partner with China’s second-largest mobile phone company, Unicom, to build a nationwide network of charging points for its electric vehicles.
The companies have signed a deal to build charging points at 400 China Unicom stores in 120 cities, and will also set up supercharging stations in 20 Chinese cities.
The provision of charging infrastructure in China is seen as key to growing sales of electric vehicles there.

It’s expected that the charging points will be completed by the end of this year and open to Tesla customers for free.
Tesla CEO has said he wants to invest heavily(!) in a recharging infrastructure for the country where EV sales have been slow despite central and local government subsidies(!) which started in 2009.

2. The Chinese government has been encouraging consumers to buy electric vehicles as one of the solutions to the country’s pollution problems, but the effort has been hindered by lack of charging infrastructure. Also,the Chinese government has set a goal – 30 % of all cars sold in Chinese market have to be EV to the beginning of 2016.

3. Panasonic Corporation and Tesla Motors, Inc. have signed an agreement that lays out their cooperation on the construction of a large-scale battery manufacturing plant in the United States, known as the Gigafactory. The Gigafactory is being created to enable a continuous reduction in the cost of long range battery packs in parallel with manufacturing at the volumes required to enable Tesla to meet its goal of advancing mass market electric vehicles

4.China has an import tax (25%) for cars made out of China.CEO of Tesla said they would built a factory and start producing cars in 2017 or 2018=> it means no import tax=> price will be 80.000 & instead of around 120.000 $
5.China is the country of Nouveau Riche and they have money to burn.Average driving distance less than 300 km(Tesla can go 400-500 km). China is the largest market for luxury brands(MB,BMW,Porsche,LVMH).

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