On July 25th, CCTV News Video released a report titled "A Procurement Catalog to Keep Foreign Enterprises Out", mentioning Tesla's inclusion in the procurement lists of local governments and state-owned enterprises.
Tesla's Global Vice President Tao Lin shared the report on Weibo and stated that "keeping foreign companies out" reflects the fairness, openness, and inclusiveness of the Chinese market, and also gives Tesla great confidence in its development.
For the first time! Tesla enters government vehicle procurement catalog
On July 4th, the topic # Tesla entered the Jiangsu Provincial Government's vehicle procurement catalog # went viral.
According to the Jiangsu Government Procurement Network, the "Announcement on the Nomination of New Energy Vehicle Framework Agreement Procurement by Party and Government Organs, Institutions and Group Organizations in Jiangsu Province for 2024-2025 (III)" disclosed by Jiangsu Government Procurement Network shows that Tesla Model Y has entered the Jiangsu Provincial Government's new energy vehicle procurement catalog.
Jiangsu Government Procurement Network
According to the above information, the latest batch of procurement shortlists also includes models such as Wenjie M7, Avita 11, Shenlan SL03, Shenlan S7, Zhiji LS6, Zhiji L7, Galaxy L6, Galaxy E8 Executive Edition, Geometry E, Geometry G6, Changan UNI-K/Z, Qiyuan A07, Qiyuan Q05, Roewe D5X, Volvo XC40, Cao Cao 60, etc.
According to the procurement requirements, the scope of the purchaser in this framework agreement is provincial and provincial-level party and government organs, institutions, and organizations in Jiangsu Province. The responding supplier shall not impose any additional conditions on the scope of the purchaser. Small scale sporadic procurement is implemented through framework agreement procurement, with province wide linkage. Small scale sporadic procurement refers to the procurement behavior where the purchaser needs to purchase multiple times and the single purchase amount does not meet the dispersed procurement limit standard. The dispersed procurement limit standard is 1 million yuan at the provincial and Nanjing levels; 500000 yuan for other prefecture level cities and counties (cities).
According to the open framework agreement procurement solicitation document (JSZC-320000-SCZX-K2024-0107) published by the Jiangsu Provincial Government, the scope of purchasers or service recipients applicable to this framework agreement is party and government agencies, institutions, and organizations at all levels in Jiangsu Province. The procurement indicators include sub packages such as sedans, off-road vehicles and SUVs, commercial vehicles and MPVs, pickup trucks, and medium and large buses. Among them, SUVs are priced at 250000 yuan and require a pure electric range of over 400km.
According to The Paper, it has been confirmed from Tesla that Tesla cars have entered the government procurement catalog for the first time.
According to Red Star News, on July 4th, the contact person in charge of the project at Jiangsu Provincial Government Procurement Center confirmed to reporters that Tesla has been shortlisted for the relevant procurement catalog.
At present, we do not have a formal document prohibiting (Tesla) from entering. "The contact person stated that in terms of eligibility requirements, as long as the car company meets certain price and configuration requirements, it can be shortlisted. At the same time, it emphasizes that the announcement content is only shortlisted, and whether there will be specific procurement in the future depends on the user's choice.
In addition, according to a report by Shangguan News, the Jiangsu Provincial Government Procurement Center told reporters that Tesla voluntarily applied for this procurement, and the procurement center recognized Tesla's qualification based on two dimensions: parameters and price.
According to the appendix of the framework agreement solicitation announcement and Chapter 4 of the open framework agreement procurement solicitation document, the technical requirements for off-road vehicles including SUVs are: 5-seater to 7-seater, wheelbase greater than 2600mm (inclusive), pure electric range ≥ 400KM, extended range ≥ 100KM, plug-in ≥ 60KM, fast charging time not exceeding 0.8 hours to reach 80% fast charging capacity. From a price perspective, the maximum purchase limit is 250000 yuan.
Therefore, the Tesla Model Y meets the above conditions. Currently, the Tesla Model Y rear wheel drive version (standard range version) has a wheelbase of 2890mm, a CLTC pure electric range of 554 kilometers, a 0-100km/h acceleration of 5.9 seconds, and a maximum speed of 217km/h. Its official guide price is 249900 yuan.
The Jiangsu Provincial Government Procurement Center also stated that the government does not purchase imported goods, and imported goods require special approval. "However, Tesla is not an imported vehicle, but a domestically produced one," explained a staff member of the Jiangsu Provincial Government Procurement Center.
According to Beijing Business Daily, Tesla's Shanghai factory has achieved a localization rate of over 95% for its components.
Some argue that data security compliance is also one of the reasons why Tesla was selected for the bus procurement catalog. On April 28th, the China Association of Automobile Manufacturers released the "Notice on the Testing of Four Safety Requirements for Automotive Data Processing (First Batch)", in which Tesla's domestically produced Model 3 and Model Y both meet the four compliance requirements for automotive data security, making them the only foreign-funded enterprises that meet the compliance requirements.
Previously, Tesla had achieved localized data storage at its Shanghai data center in 2021. In addition, Tesla has introduced a third-party authoritative organization to audit the company's information security management system and has passed the security management system certification (ISO27001).
FSD is expected to enter China by the end of the year
After addressing data security, Tesla FSD is expected to accelerate its landing in the domestic market.
According to the Daily Economic News, during the Q2 earnings conference call on July 24th Beijing time, Musk responded to a series of investor questions, covering multiple areas such as FSD and Robotaxi.
Musk stated that Tesla's FSD system will be available in China, Europe, and other countries on versions V12.5 or 12.6. Tesla will apply for regulatory approval in Europe and China to implement supervised FSD, and is expected to receive approval by the end of this year.
Tesla has conducted a large number of FSD tests in the United States, and from the feedback effect, it is close to the landing point. Ji Xuehong, director of the Automotive Industry Innovation Research Center at North China University of Technology, previously stated in an interview with reporters that now Tesla is bringing its FSD to China, which will accelerate the improvement of domestic autonomous driving technology.
It is reported that in March of this year, Tesla released the FSD V12 version, which implemented end-to-end algorithms for perception and decision planning modules. At present, Tesla has started pushing the latest FSD V12.5 version to EA test car owners (non employees) in the United States.
According to Musk, the FSD V12.5 will improve its vision based driving focus monitoring function, upgrading from the original torque sensing steering wheel to an eye tracking system that can be used normally even if the owner wears sunglasses. The new version has also switched to an "end-to-end" solution for high-speed and urban intelligent driving.
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