Tesla makes it to Fujian govt procurement list

U.S.-based electric vehicle maker Tesla Inc has been included on a government procurement list of East China's Fujian province for the first time. This follows the automaker's earlier inclusion in the purchase list of East China's Jiangsu province and several State-owned enterprises from Shanghai.

As China pushes forward its new energy vehicle industry through further opening-up, provinces and regions nationwide will allow more foreign brands into their procurement processes, experts said.

Local government authorities, government-related institutions and organizations can buy a range of NEVs, including Tesla's Model Y vehicle, the Fujian provincial government's online procurement website showed.

According to Tesla's official website, the price of its Model Y — it has a range of 554 kilometers and a top speed of 217 km/h — starts from 249,900 yuan ($35,000). The model is currently Tesla's most popular SUV.

"Tesla's entry into the government procurement process is a clear signal from the Chinese government to encourage the development of intelligent connected vehicles, irrespective of whether the manufacturer is Chinese or foreign. As long as they comply with the requirements, they will be included in the government procurement process," said Sun Xiaohong, general secretary of the passenger car unit of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, a national organization responsible for trade in machinery products.

"The entry into the government procurement process in one province is just the start. More provinces and regions will open up for foreign cars as long as they meet the specified requirements," Sun said.

The chamber is representing China in its counter-appeal against a decision by the European Union to impose additional tariffs on Chinese EVs.

In July, Shanghai Lin-gang special area said that several State-owned enterprises from the area have already bought a group of Tesla's vehicles for official use. Earlier this year, Tesla Inc has been included on a government procurement list of East China's Jiangsu province for the first time.

In April, Tesla, along with five Chinese carmakers, cleared a key data security test conducted by the China Association of Automobile Manufacturers and a national computer network center.

Wang Peng, a researcher with the Beijing Academy of Social Sciences, said Tesla and other foreign automakers are likely to land more government orders in the future.

"As China is currently spurring the NEV industry through opening-up and competition, other provinces and regions will follow this trend and gradually allow foreign brands in their procurement processes," Wang said.