Tesla steals the limelight at the Shanghai trade expo, proving ‘Chinese consumers and US products are still intertwined’
- ‘Tesla’s success [in China] proves that Chinese consumers and US products are still intertwined,’ says retail expert
- Huge crowds gathered to see the Model S Plaid and Model X Plaid debut at the China International Import Expo
The US carmaker stole the show once again at the China International Import Expo (CIIE) that started on Saturday, even though its new models on display are not yet available to mainland customers.
They were eager to take a look at the US-made Model S Plaid and Model X Plaid, which were making their debuts in China.
A Tesla official at the booth, who asked not to be identified, said the hectic scene beat the company’s expectations. The company “had just hoped to share [its] latest products and vision about new-energy vehicles, but many visitors were keen on owning the new models,” he said.
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The annual event is designed to spur purchases of imported goods and services by mainland Chinese companies.
Tesla’s new models, estimated to start at about 1 million yuan (US$139,179) after factoring in import duties, will not be assembled in China because the company expects the lofty prices to keep the sales volume low, according to the official at the stand.
“Visitors are here to get a taste of the best electric vehicles (EVs) in the world,” said Chris Xia, a young white-collar clerk who was there to learn more about Tesla’s upmarket smart models. “Tesla is not just a US carmaker, it is a global carmaker particularly because of the contribution by its Shanghai Gigafactory.”
The Giga Shanghai, as it is also known, is the first fully-owned foreign carmaking plant in China, assembling only Model 3 and Model Y vehicles, whose prices range from about 300,000 yuan to 400,000 yuan.
The American giant dominates the mainland’s premium EV segment.
Tesla’s booth was the lone bright spot in the CIIE’s automobile hall last year when Model 3 and Model Y vehicles were displayed.
About 200 American businesses are participating in this year’s event, about the same as last year, according to the US-China Business Council.
Among them is chip maker Qualcomm, displaying products that use its technology. Lam Research, an American semiconductor equipment supplier, set up a booth displaying background information about the company.
Canada Goose, the New York- and Toronto-listed parka maker that has benefited from its China expansion, said it had expanded from one shop in Hong Kong four years ago to 22 outlets today across China, with 550 employees.
“[China] is our source of inspiration for many first-to-market initiatives,” said Larry Li, the company’s president in China. “We entered China with a tailored, direct-to-consumer-first model, and we collaborated with our first ever guest designer in China, a strategy we are expanding upon season after season.
“The vast size, potential and vitality of the Chinese market mean endless opportunities for us.”
Exhibitors said the number of visitors at CIIE this year was down from 2021 because of the stricter virus controls.
All participants have to be fully vaccinated and provide records of negative nucleic acid tests taken within 24 hours of entering the venue, compared with a 48-hour requirement last year. Masks are also mandatory for people taking part in the event.
