SHANGHAI (Reuters) – Tesla (NASDAQ:)’s best-selling Model Y has been included in a list of electric and plug-in hybrid models that a local government in China can buy as a service car, according to China’s official media outlet the newspaper on Thursday.
It was the first time Tesla’s cars were eligible for government purchases in China, the newspaper said.
The Chinese provincial government in eastern Jiangsu published a government statement on June 6, issuing 56 batches of tenders for new energy vehicles for use as official vehicles by parties, governments and public organizations.
Apart from the Model Y made at Tesla’s Shanghai factory and the XC40 from Volvo (OTC:) Cars, the other 54 batches were all electric vehicles and hybrids from the Chinese brand. Volvo Cars is owned by Chinese car manufacturer Zhejiang Geely Holding Group.
Neither the government nor the Chinese media specified how many Model Y cars the Jiangsu provincial government could purchase.
Tesla cars were banned from entering some government and military buildings in China.
The restrictions were lifted after receiving approval from the country’s top auto industry association, which said in April that data collection by Tesla fleets in China was compliant.
As demand for Chinese cars abroad is overshadowed by the prospect of tariffs and domestic competition increases, Tesla’s deliveries of Chinese-made cars fell 9% in the first half compared to the same period in 2023.
However, Tesla CEO Elon Musk’s visit to China at the end of April to meet Prime Minister Li Qiang seems to be paying off.
China has increased its support for Tesla, which plans to build a data training center and roll out its Full Self Driving software in the country this year, despite ongoing tensions with the United States over tech rivalry.
