China has welcomed Tesla with open arms, the latest reports revealed.
While the American electric vehicle (EV) firm has been flagged with reports that its cars were burning up, the Chinese market continues to support the company for several reasons.
Industry experts said over the weekend that one of the reasons why Tesla is welcomed in China is due to its willingness to adapt to the country’s traditions and culture.
Many auto manufacturers have come and gone in the Chinese market but Tesla has been doing great since it entered the Asian market in 2014.
Just last month, the U.S. EV maker sent out reviewers to high school students days before they took up national university exams.
While the gesture may not be as grand as other companies did in the past, the move has established Tesla as one of the most adaptable foreign companies that tried its luck in the massive Chinese market.
Experts noted that Tesla may have been working hard on its Chinese-targeted marketing campaigns ever since it entered the country. One of the most recognized moves the Elon Musk’s company made is its “Music Parties” campaign.
Tesla partnered with QQ Music, a unit of Tencent’s QQ subsidiary, to hold music-inclined events that targeted younger audiences. Younger Chinese consumers are expected to make car purchases sometime in the near future, making Tesla’s marketing campaign an early nod towards an audience that could be its loyal patrons when they make auto purchases as they grow older.
Other industry analysts said last week that Tesla is doing its work well in China, compared to other brands. Morgan Stanley analysts led by Adam Jonas, said that if the company continues to do things right in the Chinese market, it “may be able to ramp China production faster than we have currently anticipated in our model.”
Furthermore, they are expecting the EV giant to lead the luxury EV market in China within three to five years if it overcomes the competitiveness in the country’s auto market.
Finally, experts polled by rating company FactSet said they are expecting sales to increase to $6.5 billion for the third quarter of 2019. The numbers are a significant hike from Q3 2018 that stood at $4 billion.
Some local competitors have also lost steam, the latest data for June revealed, paving the way for Tesla to build a stronger presence in the Chinese market. Analysts believe Tesla will deliver on its targets of EV deliveries and production if its Shanghai Gigafactory is completed in time.
