Tesla’s Model 3 is creating a lot of buzz in the plug-in car market. While China has a reputation for being environmentally insensitive, they are currently the largest market for full EV’s.
There are three companies that are looking to capitalize on the excitement that Tesla has created, and it is hard to see a downside to all the development that is taking place in the sector.
WM Motor, Singulato and Future Mobility are the three Chinese start-ups that are looking to enter the market, with a plan to beat Tesla on all fronts. While the Model 3 is expected to retail around $35,000 in the United States, Chinese buyers will have to pay a 25% import duty.
The three Chinese companies see this as an opportunity to create a more luxurious automobile, that will come away cheaper than the Tesla. In addition to having to pay tax on a Tesla, Chinese buyers can take advantage of the fact that the Chinese manufactures are sure to be able to realize cost savings on labor.
While this may or may not make the difference for Tesla’s market-share, the development of infrastructure to support both the manufacture and use of full electric autos is a big win.
It is thrilling to see industry respond to the obvious demand for these new technologies, and with further development the efficiencies that are created will benefit the world as a whole.
The Chinese companies all plan to have a production model available before 2020, and they want to hit the market running. Overall this is a great development, that creates nothing but potential for growth. As people shift away from petrol-burning engines, the infrastructure to support EV’s is sure to expand.
It will be exciting to see how the EV market develops in China. What benefits arise from this competition are yet to be seen, but they will no doubt be substantial.