Tesla Given The Green Light To Build Electric Cars At Its £1.6 Bn Factory In China And Aims To Build 250,000 Vehicles A Year There
Tesla has been granted permission to produce its electric cars in China, it has been confirmed today. The U.S. firm – headed by Elon Musk has been added to a government list of approved automotive manufacturers, China’s industry ministry has revealed.
This grants the electric-vehicle maker the certificate it needs to start making its range of plug-in cars at its state-of-the-art US$ 2 bn Gigafactory 3 facility in Shanghai.
It does feel like déjà vu! The iconic technology manufacturer Apple Inc. also followed a similar path. For Tesla to leverage its early-mover advantage and current leadership in the global automotive sector, the EV manufacturer has to evolve from a small-scale automotive manufacturer to a company that is capable of delivering volume and economies of scale i.e. lower prices for customers.
It is impossible to argue against the narrative of establishing a manufacturing base in China, after all, very few countries, if any at all, can robustly compete against the manufacturing skills and the lower cost base in China.
The Tesla plant in China will manufacturer both electric cars and batteries. A prudent strategy by the management at Tesla, as without a scalable and robust supply chain infrastructure, achieving scale is challenging. The Shanghai based plant is expected to build 250,000 new cars a year.
The production plant in China will become the ‘backbone’ of the avant-garde California based company, in gaining market share by delivering the hugely successful and affordable Tesla Model 3 battery electric vehicle (BEV). The company is expected to build up to 1,000 Model 3s each week.
The Shanghai plant will also give Tesla access to the fast growing zero-emission electric vehicle market in China. In fact, China is the largest EV market globally. We at e-zoomed are huge fans of Elon Musk and team and wish them the very best for this gigantic step!
By 2050, Volvo aims to reduce its emissions by 40 percent, targeting manufacturing processes, operations and even the shipping of new vehicles from its factories. The car themselves will play a part too. In Los Angeles on Wednesday, Volvo showed off its first all-electric car, a battery-powered version of its XC40 small SUV, dubbed the XC40 Recharge.
It is indeed good to note that the Volvo Group is aiming to cut back its ‘lifecycle footprint’ by 40%. In fact, the automotive behemoth is also aiming to become carbon neutral by 2040. Of course, lets not forget that the company is aiming for 50% of its global sales from the sale of electric vehicles. An all-encompassing approach to reducing the carbon footprint to include, supply, manufacturing and wider operations is the appropriate way forward not only for Volvo, but for all automotive manufacturers. We at e-zoomed recommend an industry wide implementation of reducing the lifecycle footprint across the automotive value chain, to include, supply, manufacturing and sales. We applaud the management at Volvo for taking leadership on this imperative issue.
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