Shulou(Shulou.com)11/24 Report--

CTOnews.com, Sept. 15 (Reuters)-Tesla is re-evaluating the way he sells electric cars in China's second-largest market and is considering closing some showrooms in luxury shopping malls in cities such as Beijing, which did not have as much traffic during the epidemic, according to Reuters.

Tesla pays more attention to lower-cost suburban stores, which will also provide maintenance services to users and implement Musk's promise to improve services for existing customers, they said.

One of the sources said Tesla was seeking to step up efforts to recruit technicians and other service personnel in China. CTOnews.com learned that Tesla's Chinese recruitment website showed that as of Thursday, they still had more than 300 service jobs vacant.

Musk said on Twitter last week that he had made "promoting Tesla's service to make it better" his primary goal in response to a complaint from a would-be car owner in Texas who had been waiting for a month to pick up the car.

Tesla did not immediately respond to a request for comment.

Tesla sold 400000 Chinese-made Model 3 and Model Y cars in the first eight months of this year, 60 per cent of which were sold locally, up 67 per cent from last year, according to the ride association.

At present, Tesla China has become the second largest electric car brand in China after BYD, of course, the two market strategies are not the same. One analyst pointed out that now that it has established its own brand in the world's largest car market, it must cultivate customer loyalty.

"there is no need to open showrooms in expensive shopping malls, especially when the maintenance business becomes profitable," said Yale Zhang, managing director of Automotive Foresight, a Shanghai consultancy. "it makes more sense to keep only one or two showrooms in the city center to maintain brand positioning and move more showrooms to the suburbs."

According to public information, Tesla opened his first store in central Beijing in 2013. at present, there are more than 200 stores across the country, showing models and arranging test driving services for potential buyers, but at least half of the stores do not provide maintenance services. including Tesla's first store in Beijing and the first store in Shanghai.

Tesla has set up exhibition halls in seven of the country's largest cities, including Shenzhen and Chengdu, more than half of which are in downtown areas, and rents are extremely expensive, according to Tesla's official website.

Reuters is not sure how many downtown showrooms Tesla is considering closing, or how many new stores in the suburbs, or how much the shift will cost.

Tesla's electric car competitors in China, including BYD and Xiaopeng Motor, have adopted different strategies for retail distribution. In addition to self-owned stores, other car companies rely more on third-party dealers and 4S stores, which are similar to Weilai, but Weilai pays more attention to door-to-door service, sending workers to pick up and repair the car and then send it away after the work is finished. these strategies have their own advantages.

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