Unlike traditional car manufacturers, Tesla has always followed the “high-cold†route in the Chinese market: not doing traditional advertising, insisting on the direct mode, even if it would be questioned “unacceptableâ€.
However, after gaining insight into the needs of Chinese consumers, the Silicon Valley-based company is increasingly aware of the importance of implementing a localization strategy.
On September 21, 2015, Tesla Global Brand Vice President Ricardo Reyes flew directly to Beijing from the Frankfurt Motor Show to promote the “California Spree†program for Chinese car owners.
According to Ricardo, the “California Spree†is an exclusive plan for car owners in mainland China. It will invite 50 Tesla Model S P90D owners to visit Silicon Valley, California in January 2016 to visit Model S and Model X. Factory and direct communication with members of the Tesla leadership team. In addition, the invited owner can also bring a guest to go with them.
“The Tesla factory is located in the beautiful northern part of California and is the source of Tesla's change of the spirit and strength of the world. At present, our business in China has developed rapidly. Therefore, we especially love and support Tesla in China. The owners have launched this exclusive program, hoping to showcase and share the ideas and practices that we are proud of to change the world.†Ricardo said.
Thanks to the frequent introduction and implementation of favorable policies, China's new energy vehicle market is welcoming this year. In the first half of the year, China's domestic new energy passenger vehicles completed sales of 50,627 units, an increase of 185.8% compared with the same period last year. Among them, Tesla delivered 2,147 vehicles in China, about 10% of the company's global sales. Although there has been a certain increase compared to the same period last year, it still has a long way to go with the 10,000 targets set by Tesla’s head, Musk.
In an interview with the Times Weekly reporter, Ricardo also said that Tesla's market in China is currently growing. In the future, they will have more investment in localized production and R&D in China.
On the day after Ricardo’s interview, Tesla’s official website in China announced that from now on, due to the depreciation of the RMB, the price range of Tesla Model S in China has changed from the previous 685,000 yuan to 953,000 yuan. From 718,800 yuan to 1 million yuan, the price increase is about 5%.
Times Weekly: How do you see Tesla's performance in the Chinese market this year?
Ricardo: My report here shows that the Chinese market has grown very sharply compared to last year. For a simple example, Tesla’s sales in China in August this year were 45% compared to July. increase. From the perspective of the global market, there has also been a substantial increase. It is worth mentioning that this is a good result in the whole market, especially the luxury car market is very depressed.
Times Weekly: What adjustments will Tesla make for the Chinese market?
Ricardo: Actually, regarding China's strategy, we have made adjustments since the beginning of this year.
Our adjustment is based on a very important understanding that at this stage for China, the universal education work of the market is very important. Tesla is a very different company. Whether it is in the field of technology or in all aspects of service, it is very important that we use time and patience to communicate and popularize with Chinese consumers, governments and the media. Fortunately, we have seen that the efforts we have made have paid off.
Times Weekly: Why is this "California Spree" program launched for the Chinese market?
Ricardo: Compared with other emerging markets, the Chinese market, from the government's support for the electric vehicle industry to the consumer's demand for electric vehicles, is unmatched by other markets. Tesla is willing to introduce such a plan into the Chinese market. .
Times Weekly: In March of this year, CEO Musk said during his visit to China that Tesla will set up a factory in China within three years. What is the current progress? Since the foreign-funded enterprises in China have to obtain joint ventures with local enterprises in China to obtain the qualifications for production, what are the criteria for Tesla's selection of Chinese partners?
Ricardo: It may be too early to discuss some specific details. We have such a plan because we believe that with the introduction of Model 3, there will be a wider range of market demand. Until then, in order to meet market needs, we may launch localized production. Specific progress must be shared with you when appropriate.
In addition, Tesla's investment in China is not only in the production field, but also in the R&D field. We have some plans in China to target the R&D.
Times Weekly: In terms of marketing, Tesla has never done traditional advertising. Will it be adjusted in the future?
Ricardo: We certainly think that advertising is a good marketing method. The reason why we did not advertise large-scale before, is not specifically done. Tesla will also advertise in the future, but it may be a good time, that is, after the introduction of Model 3. Model 3 is aimed at a more popular market, and advertising is a great way to enter a more popular market.
But at present, our Model S owners are limited to a small group of owners or target groups, so we think that advertising is not necessarily the most appropriate way.
At present, our most important sales method is also through mouth, which is the recommended way of car owners.
On the other hand, as a start-up company, we basically use all the proceeds for the next stage of research and development. After the company grows and grows in the future, with more revenue, it is believed that advertising will become a better marketing method.
Times Weekly: Tesla is still losing money every quarter, how to solve this problem in the future?
Ricardo: In fact, we have reached a consensus with investors from the beginning. Tesla is a high-tech company dedicated to research and development, and is committed to promoting sustainable energy development or sustainable transportation.
There is a view that if we concentrate on producing Model S, we will be a very profitable company, but this is not what we have to do. What we hope to do is to promote this electric vehicle industry and even the entire automotive industry. Progress and development. Therefore, any profit will be immediately used in our next phase of the development process, such as our upcoming Model X SUV. And all of our revenue on Model S and Model X will be used in the next model of Model 3.
Many people discuss that we have a loss every quarter, but we still look at us in a traditional car operation. In fact, for us, it is only after the more mass-produced products enter the market, it is meaningful to look at the revenue. For example, it will be valuable to look back after 2020. This philosophy is also recognized by our investors because they are looking for long-term benefits.
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