The China Automotive Information Net reported 11,364 new Tesla registrations in May, a new record for the electric vehicle (EV) manufacturer. The company’s surging sales reflect the recovery of the Sino automobile market from the impact of the coronavirus pandemic.
The firm’s success also indicates its unconventional and highly reactive approach to sales, and production is a winning strategy.
Chinese Vehicle Sales Recovery
Although China is the world’s largest auto market, the region’s vehicle sales have fallen in the last two years because of international trade disputes and local economic contraction. The area’s electric vehicle market also took a big hit because of falling gas prices and discontinued tax incentives. The country’s ground transport sector cratered in January, sliding by 78.6 percent annually due to pandemic related production shutdowns and self-quarantine orders.
However, Tesla’s record-breaking performance in May indicates consumer behavior is beginning to trend in a different direction.
Last month, Chinese automobile sales rose by 1.9 percent, the sector’s first recorded expansion since July 2019. Moreover, the nation’s EV sales have started to rally in recent months. In March, Sino battery-powered auto purchases decreased 49 percent year-over-year, 30 percent in April, and 26 percent in May. Though still in a recuperation phase, it is clear the local new energy vehicle sector is regaining momentum.
Nevertheless, Tesla representing over 16 percent of the Chinese EV market in the month previous signifies the brand’s increasing appeal.
Why Tesla is Leading the EV Pack
One reason the Fremont, California-based EV manufacturer outpaced its rivals in the Sino region is its operational agility.
After its Shanghai Gigafactory resumed production, Tesla initiated a change in its consumer outreach efforts by offering contactless test drives. Instead of going to a dealership, meeting with a salesperson, and then getting behind the wheel, locals could schedule their product encounters online or by phone. The company also created in-vehicle video instructions to familiarize buyers with the features of its sedans and SUVs.
Besides, Tesla produced area-specific commercials to inform the public about its no-contact test drive option.
That said, the corporation’s innovative approach to the automotive market is not limited to its sales tactics. The firm recently partnered with a Chinese manufacturer and American scientists to develop a new high-capacity EV battery pack. As a result, the company’s forthcoming vehicles will be able to last up to 1 million miles, up from 300,000 to 500,000 miles currently.
The EV producer’s groundbreaking cell development will make its automobiles more durable and less expensive.
In addition, Tesla CEO Elon Musk recently confirmed on Twitter his organization is preparing volume production on an electric semi-truck. As of this writing, the manufacturer has not released details about its freight vehicles, but they could theoretically save long-haul logistics companies lots of money on maintenance and fuel costs. Indeed, as Germany mandated its gas stations must also provide electric charging stations, battery-powered ground cargo transport is going mainstream.