Important green light for Tesla during Musk’s visit to China

(Beijing) The American car manufacturer Tesla obtained an important regulatory green light from the Chinese authorities in terms of data security during the whirlwind visit to China by its boss Elon Musk, which ended on Monday.


The billionaire arrived in the Chinese capital on Sunday for his second visit in less than a year to the Asian country, the world’s largest automobile market.

Elon Musk notably met Prime Minister Li Qiang, with the ambition of consolidating the popularity of his cars in the country, which must compete with fierce local competition.

On Sunday, models manufactured in China by Tesla were officially included on the list of vehicles meeting national data security requirements. This is the removal of a major regulatory obstacle.

Elon Musk boarded his private jet at Beijing Capital Airport on Monday around 1 p.m. local time (1 a.m. Eastern Time). His device is bound for Anchorage, Alaska (United States), according to a Chinese flight tracking application.

Despite strong competition from Chinese companies, Tesla cars are among the best-selling in China.

The company hopes to boost sales in the Asian country with its “Full Self Driving” (FSD) feature, already available in the United States.

This assisted driving technology would be close to obtaining a green light from the authorities for use in China, thanks to a partnership with the local internet giant Baidu for maps and navigation, according to the Bloomberg agency.

Tesla did not immediately respond to questions from AFP regarding the FSD function and its partnership with Baidu.

“Lost their competitiveness”

On Sunday, the China Association of Automobile Manufacturers (CAAM) indicated that the Model 3 and Model Y, two Tesla vehicles produced at its Shanghai mega-factory, complied with data security laws.

CAAM had said it had been testing vehicles from several brands since November 2023, with the help of a national IT security regulator, to check how they collected and processed data.

The tests included personal information and recordings of faces outside the car.

According to analysts, the FSD function could help Tesla stand out in a local market already well stocked with modern, technology-packed Chinese vehicles.

Tesla’s Model 3 and Model Y “have lost their competitiveness,” said Tu Le, general manager of Sino Auto Insights.

“This certainly does not guarantee additional sales, but without FSD, Tesla has nothing new to offer to consumers who are now accustomed to seeing new developments on electric vehicles every six or nine months. »

The price could also turn off some customers.

“Tesla’s FSD is not free (…) I don’t think current Chinese Tesla owners are willing to pay to use it,” Zhong Shi, an analyst with the Dealers Association, told AFP. automobiles from China.

“Many Chinese automakers offer similar functions for free or at a discount. »

One on three

China is at the forefront of the transition to electric vehicles.

“Based on current policies, nearly one in three cars on Chinese roads by 2030 is expected to be electric,” the International Energy Agency estimated in its annual report on the outlook for electric automobiles. , published last week.

Elon Musk’s desire to secure Tesla’s future in China reflects the importance of this extremely lucrative market for foreign automakers.

Last week, two Japanese auto giants said they would begin partnerships with Chinese technology companies to improve their artificial intelligence (AI) capabilities.

Toyota has said it will partner with Chinese video game giant Tencent to try to capitalize on the growing appetite of drivers in China for smart features.

Many foreign manufacturers are struggling to maintain sales in China as part of the transition to electric.

For its part, the Japanese Nissan indicated that it would cooperate with Baidu, again in terms of artificial intelligence and for vehicles intended for the Chinese market.


reference: www.lapresse.ca

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