Tesla recently filed to launch a fresh recall of up to 36,126 imported Model S and Model X vehicles in China because of touch-screen failures – the latest after several rounds of recalls in 2020 – which an analyst said would slightly impact its branding in the world’s largest car market, though may have no materialistic impact on its sales.
According to the Chinese State Administration for Market Regulation (SAMR), the cars to be recalled were made between 2013 and 2018 by Tesla in California and exported to China.
Tesla electric vehicles feature a media control unit that contains memory devices and other components. The memory devices in some of the units have program-erase cycles limited to 3,000 and therefore, they may not work well after reaching the limit, which could lead to potential risks, according to a statement on the SAMR website.
It’s worth noting that Tesla has made a series of recalls in China over the past several years. In October 2020, Tesla announced it will recall 48,422 electric vehicles made in the US due to potentially faulty and unsafe front and rear suspensions.
Wu Shuocheng, an independent car analyst, told the Global Times that repeated calls may have an impact on Tesla’s branding but may have no materialistic impact on its sales in China, as it still enjoys the leading position in the electric vehicle market.
He said quality control is indeed a problem for Tesla, and almost every carmaker, especially as its output of Model 3s at the Shanghai Gigafactory has exceeded 5,000 a week.
“Tesla’s sales in China remain hot, with its December sales hitting 24,000 units,” Cui Dongshu, secretary-general of the China Passenger Car Association, told the Global Times on Saturday. He said that Tesla’s sales in January may drop slightly due to seasonal factors.
Tesla has started delivering made-in-China Model Ys in January, a step which the company said marked a “brand new stage” for the US electric carmaker’s development in China.
However, Cui said that the price of the Model Y, which is currently priced at 339,900 yuan ($52,548) in China, may be cut again in 2021 to below a reasonable price of 300,000 yuan in order to compete with fuel vehicles and local electric car brands.
Tesla has been widely criticized for avoiding responsibility when dealing with quality control issues. Tesla was involved in a charging incident in late January, where the US carmaker blamed State Grid on instantaneous current overload as a new Tesla Model 3 user in Nanchang, East China’s Jiangxi Province, couldn’t start their car after charging.
After State Grid made a righteous reply, Tesla said in an apology statement that during communication with Tesla after-sales staff, the consumer recorded audio and then cut and spread the clip about State Grid, which caused misunderstandings.
The Xinhua News Agency said in an editorial that Tesla shouldn’t be arrogant toward consumers’ questions. “There are already a number of electric vehicle brands flourishing in China and how long an enterprise goes relies on its attitude toward consumers,” said the editorial, noting that no marketing can save an enterprise once it loses word of mouth and credibility.
Photo taken on Jan. 7, 2020 shows an inside view of Tesla Shanghai gigafactory in east China’s Shanghai.Photo:Xinhua
