Tesla hopes to emulate its Hong Kong success in other Asian markets
Tax waivers and government support helped Tesla in the Hong Kong market, but these factors are currently lacking on the mainland and in Singapore
Much of Tesla’s success in Hong Kong is due to tax waivers and government support, and the same is needed in other Asian markets before Tesla can become more mainstream, according to industry experts.
In 2015, the Tesla Model S was the best-selling sedan in Hong Kong with sales of over 2,000 units. The success in the city prompted Tesla chief executive office Elon Musk to call Hong Kong a “beacon city” for electric vehicles, before saying that he hoped the rest of the world will follow Hong Kong’s lead.
“Hong Kong has one of the most technology savvy and forward-thinking populations,” said Robin Ren, vice president for Tesla in Asia-Pacific. “So naturally when a new product category such as electric vehicles comes into the market, they are the first ones to pick it up.”
Ren also said that the Hong Kong government played an “important role” in educating the public in early adoption, by implementing tax waivers as well as setting up the required battery charging infrastructure in the city.
The biggest contributor to Tesla’s success in Hong Kong is likely the government’s waiver of first registration tax on eligible electric vehicles. Under the scheme, which is currently valid until March 2017, drivers who purchase a Tesla Model S in Hong Kong are able to save upwards of HK$480,000 in taxes, making the vehicle more affordable.
