Manufacturing News

Tesla sets Model X SUV's China debut for first half of 2016

Tesla Motors Inc. expects to start selling its Model X SUV in China in the first half of next year after introducing it in the U.S. this quarter.

The electric-car maker also will open five to six new showrooms by the end of this year, bringing the total number in China to 15, said Gary Tao, a Beijing-based spokesman for Tesla. The new outlets will be in the center of cities like Beijing, Shanghai and Guangzhou to raise visibility for the brand, Tao said.

Tesla's new SUV may help it boost sales in China, where such vehicles remain the fastest-growing segment when overall demand for automobiles is slowing. The company faces challenges in a country where sales of its Model S sedan have been dogged by cancellations and concerns about the ease of charging.

The new Model X will double the company's sales volume, CEO Elon Musk said last week. Tesla is counting on the new SUV to generate sales of 55,000 worldwide this year. The company, which currently sells only the Model S sedan, delivered 21,552 cars in the first half of 2015, or about 40 percent of the company's overall goal for the year.

To boost its service operations for Chinese customers, Tesla has signed up more than 20 local workshops to provide service and bodywork repairs, Tao said. Tesla has more than 1,400 destination charging stations in China and is working to boost the number of superchargers, or ultra-fast power points, Tao said.

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