The electric vehicle market in Hong Kong is not the only on flourishing. The American automaker Tesla has displayed dominance in the said market. However, German automakers BMW, Volkswagen and Mercedes-Benz will try to take on Tesla.
Tesla's Dominance In the Hongkong Market
Hongkong is a good market for electric vehicles. The South China Morning Post reports that the number of electric vehicles in Hong Kong increased from less than 100 to over 5,800. The figure covered the year 2010 to July of 2016. The report added that 80 percent of the local market is controlled by Tesla Motors.
Charged Hong Kong's Vice Chairman Edwin Lee King-yan revealed that Tesla defines brand loyalty. Though Lee added that the German automakers will try to catch-up. The report also stated that Tesla would need to lower their prices to maintain their dominance.
According to Inside EVs, Tesla currently offers premium pricing in its cars. Though it does not seem to be an issue to customers.
Electric Vehicles In Hongkong
The above-mentioned electric vehicle advocacy group and Lee pointed out that electric cars should be given some incentives. He made it clear that "zero emissions" vehicles deserve "zero tax" compared to petrol vehicles. Lee considers full electric vehicles as the future.
He also disclosed that range anxiety is no longer a big problem in the country. Tesla's revamped battery packs for its Model S and Model X are good examples.
Other Options Other Than Tesla
German Consul General Nikolaus Graf Lambsdorff is hoping that German automakers would offer new technologies and more choice for drivers. He insisted that the consumers will decide on who really is successful in the said market. Lambsdorff also said that full electric and hybrid vehicles should be the normal way of transportation in Hong Kong.
He said that that the government is already working on setting the right framework. Though he added that Hong Kong should do it fast.
As for Bloomberg Intelligence's Steve Man, he said that German automakers already have an advantage with its brand equity. He mentioned that most consumers may be more convinced to buy cars from brands that they are familiar with.
Steve Man suggested that German automakers need to make their financing plans more appealing to buyers.
