Tesla’s Model Y has been included in a list of electric and plug-in hybrid models eligible for purchase by a local government in China, as reported by the official Chinese media outlet, The Paper, on Thursday. This marks the first time Tesla’s vehicles have been made eligible for government procurement in China, according to The Paper.
On June 6, China’s eastern Jiangsu provincial government published 56 batches of new energy vehicle procurements intended for use as service cars by party, government, and public organizations. Among these, Tesla’s Model Y, produced at the company’s Shanghai factory, and Volvo Cars’ XC40 were notable inclusions. The remaining 54 batches comprised exclusively Chinese-branded EVs and hybrids. Volvo Cars is owned by Chinese automaker Zhejiang Geely Holding Group.
The specific number of Model Y cars that the Jiangsu provincial government may purchase was not disclosed by either the government or Chinese media. Notably, Tesla’s vehicles had previously faced restrictions from entering certain government and military compounds in China.
These restrictions were lifted after the China Association of Automobile Manufacturers endorsed Tesla’s data collection practices in April, confirming compliance with local regulations. Despite this endorsement, Tesla’s deliveries of China-made vehicles fell by 9% in the first half of the year compared to the same period in 2023.
Elon Musk’s visit to China in late April, during which he met with Premier Li Qiang, appears to have been a strategic move. The visit has seemingly strengthened Tesla’s position in China, which has expressed increased support for the company. Tesla plans to establish a data training center and introduce its Full Self Driving software in China this year, amid ongoing tensions between the United States and China over technological competition.
