Status: 06/28/2021 1:35 p.m.
Around 300,000 Tesla Model 3 and Model Y vehicles in China have to get an update due to software problems. For the US electric car maker, concerns in China had recently increased.
The e-car manufacturer Tesla is having problems with almost 300,000 vehicles in China due to software problems. A function in assisted driving could be activated by the driver inadvertently, which could result in sudden acceleration, said the Chinese authorities State Administration for Market Regulation (SAMR).
A free online software update should be made for the vehicles, it said. That means that most of the cars probably don’t need to be brought to the workshop. The majority of the vehicles that receive the software update were built in China.
Hard fight for market share
Even if the problem can apparently be solved easily, it is an unpleasant situation for Tesla. Because the Chinese market is of paramount importance for the manufacturers of electric cars. In no other country is electromobility subsidized by the state as massively as there, and nowhere else are there so many competitors.
And the growth rates are huge: According to data from the China Passenger Car Association (CPCA), 185,000 electric cars were sold in China in May of this year, an increase of 177 percent compared to the same month last year. Overall, car sales grew by just 1.1 percent. The CPCA is forecasting sales of 2.4 million electric cars in China this year, including plug-in hybrids and other alternative forms of propulsion.
Above all, however, the Chinese automotive industry is growing into a serious competitor for Western manufacturers in the electromobility segment. This has to do with the fact that the western suppliers do not have the same technological lead over decades as they do with internal combustion engines. Chinese carmakers such as Nio, BYD, Xpeng, JAC Motors, SAIC, BAIC and others are fighting for market shares together with western suppliers.
Image problem in China?
The incident could therefore become an image problem for Tesla in this important market. Not for the first time within a few weeks, the US group has come into the focus of public attention – and that with a topic that can hardly be described as good product advertising.
For example, an event at the Shanghai auto show in April caused a sensation. A woman at the Tesla booth got into a Model 3 from the manufacturer and complained screaming about brake failure. It was taken away by security guards while the videos were spreading online. The Chinese market supervisory authority then intervened, and state media called for an investigation into Tesla.
Things are still going well for Tesla
It cannot therefore be ruled out that Chinese consumers will take a closer look at the offers made in China in the future. The weakening of international competition could also be in the economic interests of the state and authorities, at least if they want a strong Chinese economy.
At least in May, Tesla was able to hold its own in terms of sales figures and sold a total of 33,463 Model 3 and Model Y cars from the Gigafactory in Shanghai. This corresponds to an increase of 29 percent compared to the previous month. Around 11,500 of the vehicles were exported. It seems that the current moderate publicity in China is not yet affecting business.