BUSINESS Tesla to reflect on problems after being summoned by regulators

BUSINESS

Tesla to reflect on problems after being summoned by regulators

Xinhua

16:20, February 09, 2021

Visitors view a car from US electric car maker Tesla at Haikou New Energy Vehicle Exhibition in Haikou, south China's Hainan province, on Jan 10, 2019. [Photo/Xinhua]

Electric carmaker Tesla Inc said on Monday it will reflect on problems in its business operations in China, after the authorities urged it to better handle customers' car-related complaints.

"We will strictly abide by Chinese laws and regulations and always respect consumer rights," said the US-based carmaker in a Sina Weibo post.

Tesla said it is improving work procedures and strengthening internal management under the guidance of Chinese government departments. The carmaker also said it will investigate the problems consumers have reported and ensure their rights and interests.

The post came after the State Administration for Market Regulation revealed on Monday that five Chinese ministries met with Tesla representatives recently and urged it to heed consumer complaints.

China is one of Tesla's largest markets globally, but the carmaker has been accused by customers and media of responding to complaints in an irresponsible way about such things as battery fires, unexpected acceleration and failures in over-the-air software updates.

Earlier this month, Tesla issued a notice to recall around 36,000 faulty vehicles in China. Tesla is the first international carmaker to build a wholly-owned plant in the country. It is building Model 3 electric sedans and Model Y SUVs at its Shanghai factory.

Its Model 3 was the best-selling electric car in the country in 2020, over 130,000 units delivered. It sold 15,484 China-made vehicles in January.

China is the world's largest vehicle market. Statistics from the China Association of Automobile Manufacturers show that nearly 1.37 million new energy vehicles were sold in 2020, up 11 percent year-on-year.

China expects sales of electric, plug-in hybrid and hydrogen-powered vehicles to rise to 20 percent of all new car sales by 2025 from just 5 percent now.

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