Tesla's strong localization strategy in China has not only boosted operational efficiency but also contributed to global growth, while recent stimulus measures are expected to further enhance market confidence, said Tao Lin, vice head of Tesla.
In an exclusive interview with China Global Television Network (CGTN) during a matchmaking meeting in Chongqing, Tao Lin, vice president of the United States (U.S.)-based automaker, discussed the company's localization efforts and highlighted the positive effects of China's economic stimulus policies on foreign businesses operating in the country.
The vice president attended a matchmaking meeting held during a roundtable meeting between the country's National Development and Reform Commission (NDRC) and U.S. multinational enterprises in southwest China's Chongqing Municipality on Monday, where representatives from over 60 multinational companies from Europe, the U.S., Japan, and South Korea participated in discussions on cooperation and investment opportunities.
She noted Tesla's high level of localization in China, which has led to increased efficiency and effective cost management.
"Over 95 percent of our supply chain is in China, and 99.9 percent of our employees are localized. We find that local teams are highly efficient, and local suppliers respond quickly and efficiently. At the same time, our local team also does an excellent job in cost management and control. That's why I think Tesla has done a great job when it comes to localization, which also contributes to global development," said Tao.
China's central bank, together with the country's top securities regulator and financial regulator, announced in September a raft of stimulus measures, including a 0.5 percentage points reduction in the reserve requirement ratio (RRR) and a one-trillion-yuan (about 140.42 billion U.S. dollars) liquidity injection into the financial market, to promote high-quality economic growth.
When asked about the impact of these policies on American companies in China, Tao emphasized that the stimulus measures have boosted consumer confidence, driving consumption and injecting momentum into companies' future development.
"I think the direct impact on enterprises will be related to market confidence. That said, we need to see consumer confidence rebound, which will ultimately affect consumption trends. Because for any company, the most important thing is that your products are being purchased. Those products need to have a market and need to be accepted by the public. So, confidence is very important. You must have confidence in the market before you can do the back-end research, development and production," she said.
Tesla benefits from staffing, talent localization strategy in China: vice president
