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In January this year, construction of Tesla's Shanghai super factory officially began. According to Tesla's plan, the first phase of the Shanghai plant will be completed this summer, start production of the Model 3 model by the end of the year, and mass production by 2020. After being fully put into operation, the annual output of Tesla's Shanghai factory will climb to 500000 pure electric vehicles, and the price of domestic Model 3 is expected to further reduce. With the release of production capacity and economies of scale, industry insiders believe that the localization price of Model 3 may fall to around 300000 yuan, which will further increase the pressure on many domestic new energy vehicle companies.

With regard to Tesla's building of a factory in China, Xu Haidong, assistant secretary general of the China Association of Automobile Manufacturers, said in an interview that Tesla's price reduction and building a factory in China is a great impact on China's own-brand cars. Xu Haidong believes that due to Tesla's good brand effect and marketing ability, if, according to the previous plan, the annual production capacity of the Shanghai factory can reach 500000 vehicles in the future, it will aggravate the competitive pressure on the entire domestic new energy vehicle market. Under such circumstances, independent brands should take measures to enhance the competitiveness of their products as soon as possible.

In response to the impact of Tesla's price reduction and the establishment of a factory in China on China's own-brand cars, Miao Wei, minister of industry and information technology, said in an interview with reporters in the Great Hall of the people on March 12 that competition is the best measure and means to promote enterprise progress. Tesla brings competitive pressure is a good thing, to facilitate China's car companies to learn from each other, learn from each other, the end result must be market decisions, survival of the fittest, "will not all die." Not all of them will survive.

The construction of Tesla's domestic factory is in progress in an orderly manner, and Tesla confirmed that agreements have been reached with a number of Chinese banks and have received a loan of US $521 million (about 3.5 billion yuan) to build car and battery factories in China. Chen Mingbo, a deputy to the National people's Congress, said on March 6 that the Tesla project is the largest foreign investment in the manufacturing industry in Shanghai in history. It only took half a year from signing the contract to winning the land to start construction. It is expected that the construction of the final assembly workshop will be completed in May this year, and some production lines will be officially put into production by the end of the year.

For Tesla domestic after the competitive pressure, many car companies have said that "not afraid." Earlier, Xi Guohua, general manager of FAW Group, expressed his views on Tesla's entry into China, saying that Tesla's entry into the domestic market is a good thing and can promote the progress of the industry. FAW is confident to meet the challenges of Tesla and other new energy vehicle companies.

Xi Guohua: I am very confident that our FAW also has many products to meet the needs of users. I think it is a good thing for Tesla to come in. it can promote the progress of our technology. We are very confident to meet the challenges of Tesla and other competitors. of course, we will also treat partners, foreign partners, new and old forces with an open mind.

For Tesla's entry into China, Xiaopeng founder he Xiaopeng believes that Chinese brand electric cars are not afraid of Tesla, an outsider. He Xiaopeng believes that in 2014, most people underestimated the challenge of Tesla to traditional cars from the field of smart electric vehicles, and now people overestimate the possible competitiveness of Tesla in China.

Xu Heyi, chairman of BAIC, has said that the development of new energy vehicles has reached a key turning point, which is reflected in the fact that subsidies are about to completely decline and Tesla's sole proprietorship to enter the Chinese market, which is still a big challenge for domestic new energy enterprises. Xu Heyi also believes that Tesla has its own strengths, but BAIC also has its own advantages. "Tesla has his own advantages and disadvantages, and so does BAIC. BAIC's biggest advantage lies in understanding the Chinese market." the products are more suitable for the Chinese market.

In the face of the competition for the Chinese market with Tesla, Li Bin of NIO said that NIO will not use the way of price reduction to expand the market. "We have seen many price cuts by our competitors recently. we think it may be the pressure of competition. in fact, cutting prices all the time is a great harm to brands and consumer loyalty. In the long run, price reduction is not our strategy to expand the market, we will increase user loyalty and satisfaction through service innovation. " Li Bin also said that there are no plans to adjust prices because of the reduction in subsidies this year.

Different from the views of many car executives, car and home CEO Li Xiang regards Tesla's entry into China as a threat from domestic "boastful" electric car brands. Li wants to speak bluntly about the "false" propaganda about the range of domestic electric cars, and that with Tesla's domestic production, the good days of domestic electric cars "will soon be over."

It is worth noting that the car and home and other new car-building forces take a pure electric route, its ideal smart ONE uses an incremental power system, claiming that its integrated range can reach 700km and the maximum mileage is 1000km.

Generally speaking, the localization of Tesla may have a "catfish effect" in the domestic electric car market, and in the future, Tesla's Shanghai factory will also face greater pressure on the new forces of domestic car building, and the good days of domestic electric car enterprises lying down and making money may soon be over.

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