Tesla recently recalled about 20,000 China-made Model Y SUVs in the country to fix their steering issues.
According to a report by the State Administration for Market Regulation (SAMR), Tesla will apparently recall about 21,599 Model Y SUVs produced in Shanghai between the month of Feb. 4th and Oct. 30th making it one in every four SUVs that were assembled in the first 10 months of the year 2021.
The said vehicles have faulty steering knuckles, which could break under extreme conditions and may lead to the vehicle losing control.
For the record, this isn’t the first Tesla recall but it could ultimately hurt the company’s sales in China considering the aggressive number of competitors in the country which is often dubbed the HQ of EVs in the world.
Back in June, the company issued a recall of about 285,000 cars in China that were said to have a defective cruise-control system. The fixes were made via a software update.
However, the company had also faced a number of problems in the past such as complaints about USB ports which are not performing all stated functions. The problem was reportedly blamed on the global semiconductor chip shortage.
“The recall will deter some Tesla supporters from buying its vehicles,” said Eric Han, a senior manager with Shanghai-based business advisory Suolei. “All eyes will be on China’s Tesla competitors to see whether they can narrow the gap with the market leader.”
Even though Tesla has been pulling in huge numbers in sales, local rivals such as NIO, Li Auto, and Xpeng have all stepped up their games while all reporting an increase in sales in the month of November.
Even though the actual number of deliveries made in China are not published by the company, China Passenger Car Association (CPCA) said the company delivered more than 56,000 vehicles in Chia at its peak in the month of September which doubles the total deliveries of NIO, Li Auto, and Xpeng.
The following month, however, of the 54,391 vehicles that rolled out of the US carmaker’s plant in Shanghai’s Lingang free-trade zone, only 13,725 were delivered to mainland Chinese buyers.
However, Xpeng delivered about 15,613 vehicles in the month of November which is a 270% increase when compared to the previous year while NIO reported 10,878 delivered in the month making it a double in the number of deliveries it made when compared to the previous year. Lastly, Li Auto delivered about 13,485 vehicles which us a 190% increase YoY.
The CPCA forecast in mid-2021 that total EV deliveries on the mainland would more than double to 2.4 million units this year, buoyed by Beijing’s decision to achieve carbon neutrality in 2060. UBS forecast that three out of every five new cars on the mainland’s roads will be powered by electricity in 2030, compared with last year’s EV use rate of 6%.