Tesla sales in Hong Kong falter after cut in tax breaks
12 Juillet, 2017, 13:16 | Author: Marc Bacque
Registration numbers are the best datasets available to approximate actual cars sold in the country, since a new vehicle in Hong Kong must be registered to be sold.
Over in Hong Kong, the slashing of a tax break for electric vehicles (EV) - which came into effect on April 1 - has had an impact on sales of Tesla vehicles in the autonomous territory.
Though the Hong Kong example isn't a flawless analogy everywhere due to the more extreme price difference, it highlights the importance of government tax exemptions in Tesla's growth strategy and the spread of technologically advanced, fully electric cars.
"Hong Kong remains a significant market for Tesla, and we continue to sell cars there each quarter", the representative said.
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The drastic change in price and sales of electric cars shows how dependent the industry is on government aid, Business Insider reports.
Hong Kong is considering introducing tax relief for small and medium enterprises and providing additional tax deductions for research and development.
However, in an effort to crack down on increasing traffic congestion, the government has capped the tax break on Teslas at a maximum of HKD 97 500. Hong Kong authorities will review whether the policy will be brought back before the deadline.
The government had previously offered to drop the new-car tax on electric vehicles entirely, leading to Teslas becoming one of the most popular among consumers. "It's not exactly painting a glowing picture for the future of Tesla in China".
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