Firm plans to power up cars across China

Air pollution fuels demand for electric vehicles, and big cities get first charging stations

The US electric-car maker Tesla Motors says it will launch a nationwide charging and service network for its electric vehicles this year.

Solar-powered charging stations will be built in Beijing and Shanghai this year, and elsewhere in the country in ensuing years, the company's CEO, Elon Musk, said in Beijing.

The 42-year-old billionaire did not reveal who his Chinese partners will be in building the stations. But China Daily reported last week, citing a company insider, that Tesla may join up with State-owned oil giant Sinopec Group for the charging network project in the country.

Musk suggested that the charging and service networks will start in big cities where demand for electric cars is greatest.

"We will make a big investment in China to make sure every buyer has a great experience," he said.

Zhou Hongyi, founder of the Internet security company Qihoo 360 Technology Co Ltd, said electric cars may have a big market share in China.

But Tesla's solar-powered charging station project may not work well in some Chinese cities because days of bad air could hinder the process, he says.

China, the world's largest car market, has a strong appetite for electric-powered vehicles because of surging gas prices and concerns over air pollution.

Sales of such vehicles rose 13.9 percent last year compared with the year before to 21.98 million units, according to the China Association of Automobile Manufacturers.

Musk said Tesla plans to offer more electric cars with lower prices. The company also will double its production this year and may double the amount again in 2015 in order to keep up with the demand.

The ultimate goal for Tesla is to build electric cars that are affordable for all, Musk said, adding that his company's goal for direct sales and services in China is for consumers to have a "positive purchase experience".

The company's S model, equipped with an 85-kilowatt-hour battery, will sell for 734,000 yuan ($118,000), about $47,000 more than its sticker price in the United States.

Freight, tariffs and value-added tax are behind the difference, said the company.

"We have pressure from investors who are in favor of setting a higher price in China," said Musk.

But he added: "The important thing for Tesla is transparent pricing. We will not charge unreasonable prices to our customers."

Asked what score he would give his company's latest model, Musk paused and said 80 points out of 100.

"I am a tough grader. The biggest challenge is how to make the car really great and make it affordable."

gaoyuan@chinadaily.com.cn

(China Daily Africa Weekly 04/25/2014 page23)