BEIJING (Reuters) – China’s industry ministry has placed Chinese-built Tesla Inc. <TSLA.O> Model 3 cars on a list of vehicles recommended to receive subsidies for new energy vehicles, a move that will help the U.S. firm’s push into the world’s biggest auto market.
Two variants of Tesla Model 3 vehicles are listed on a recommendation list for China’s generous subsidies for new energy vehicles (NEV), according to a post on the website of China’s Ministry of Industry and Information Technology.
The California-based electric vehicle maker, which is building cars in a $2 billion factory in Shanghai, aims to make more than 1,000 vehicles a week by the end of 2019 and deliver the China-made vehicles before the Chinese new year on Jan. 25.
The annual capacity at the plant in its first phase is expected to reach 250,000 vehicles, equivalent to about 4,800 a week. This will include 150,000 Model 3 cars.
It was not immediately clear how much of a subsidy the vehicles would receive. A Tesla representative confirmed the company’s vehicles had been recommended for subsidies.
China hopes sales of NEVs, which include plug-in hybrids, battery-only electric vehicles and those powered by hydrogen fuel cells, which constituted around 4.6% of overall market in 2018, can reach a quarter of car sales in 2025.
Tesla, led by billionaire Elon Musk, is planning a broad after-sales network in China.
(Reporting by Yilei Sun and Brenda Goh; Editing by Edmund Blair)