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Tesla to begin manufacturing in China


The American car giant Tesla has moved its manufacturing process to China and begin production this month. The move to China is a bid to boost sales in the world’s largest automotive market and to avoid the higher import tariffs levied on US cars. It’s also reported that the move to China will bring down production costs. 

The car manufacturer has set an ambitious target of producing 1000 Model 3s, their electric competitor to BMW’s 3 Series, a week by the end of 2019. This is just the beginning. They aim to really step up mass production and make 500,000 models a year from 2020, an indicator that they are expecting a high level of success for their Model 3s. And why shouldn’t they? They already have 500,000 reservations for the vehicle that has been dubbed by TopGear to be a ‘truly well-engineered car.’

Purpose built manufacturing facility 

The purpose-built factory is Tesla’s first in China, or indeed overseas, and cost a whopping $2 billion to complete. It’s said the new facility will include battery pack production, production workshop and an energy centre. This is, in fact, China’s first car plant owned by non-nationals, indicating the country’s willingness to open up its car market.
Having finally acquired important government approvals in September, the mass manufacturing plant is set to begin building cars sometime in October. However, a source from Tesla has told the media they ‘aim to start some production in October, but the actual production volume depends on many factors including car orders we received, performance of newly hired workers, supply chain and so on.’ They go on to say, ‘it’s unclear when we can reach the 1,000-2,000 units per week target.’ News those on the waiting list won’t be pleased to hear. 

If you’re thinking of taking advantage of the benefits of outsourcing to China like Tesla, there’s no better choice for UK-based businesses than China Outsourcing Ltd. To learn more about the process and how outsourcing can save you money without compromising on quality, contact us today on 01202 606141.