BEIJING, December 6 (TMTPost)— A Tesla Inc.’s executive highlighted importance of supply chain in China, which is indispensable to the electric electric (EV) giant’s manufacturing advantage over rivals.

Credit：Tesla

The world is continuously transitioning to sustainable energy, during which Tesla hopes to work with more excellent suppliers to launch more competitive and innovative parts, and also hopes to leverage its own strength to lead more excellent Chinese suppliers to the international stage and compete globally, expand their footprints through winning the market competition, accelerate the transformation of the global automobile industry to electrification and sustainable energy, and let the world witness the hard power of "China's intelligent manufacturing", Tao Lin, Vice President of Tesla China, told the 21st Century Business Herald, a Chinese business newspaper under the Southern Media Group.

Tao made the remarks at the first China International Supply Chain Expo (CISCE). As the first world’s first national expo themed on supply chains. the CISCE attracted attracted 515 companies and institutions at home and abroad, including 53 of the Fortune Global 500 companies and 57 of China Fortune 500 companies. Available data shows that over 200 cooperation deals and tentative deals worth more than RMB150 billion were signed at the expo. Tesla took the center stage at the expo with the theme of "Super Intelligent Manufacturing, Connecting the World" to showcase its localization achievements in China. In addition to the updated Model 3 and Model Y--two new models made in China, the U.S. EV company also showed off decomposition of key components such as body panels, front and rear trunk lids, front and rear doors, front and rear suspension assemblies and Model Y 19-inch Gemini wheels. The so-called exposive parts are so clearly visible that audience can have close contact with the model prior to assembly.

Tesla has been actively exploring localization since entering China.It said the Shanghai Gigafactory has achieved a localization rate of more than 95% of components, with an automation rate of more than 95%, and it takes less than 40 seconds to make a vehicle. The EV maker has signed contracts with more than 400 local first-tier suppliers alone, of which over 60 them expanded into overseas market and joined in international competition with the help of Tesla.

As of October 2023, the Shanghai Gigafactory has delivered more than 770,000 EVs this year, exceeding annual delivery last year. Financial report for the third quarter shows that the actual annual production capacity of the Shanghai  factory has increased to more than 950,000 vehicles, up from from 750,000 vehicles in their previous quarter. "These achievements are inseparable from China's local supply chain that has developed with Tesla. Along the way, Tesla and Chinese suppliers have jointly carried out technological innovation and collaboratively improved efficiency. Chinese suppliers have actively responded to Tesla's needs while making many great breakthroughs in technology, and achieving commercial success." Tao Lin said.

As to the main purpose to attend the first CISCE, Tao said Tesla, as a participant and beneficiary of the integrated development of the global supply chain, is very happy to take the opportunity of the expo to demonstrate achievements of  its Shanghai factory and and have in-depth communication with outstanding exhibitors.”Tesla wishes to explore the successful experiences of other industries and sectors and turn more outstanding companies into its suppliers at the expo, so as to keep improving its production and operations,” Tao said. Tao stressed Tesla will become a "localized" company in the future to serve the needs of Chinese consumers. She added Tesla also hopes to use its own strength to promote the transformation and upgrade of local supply chain partners, help them improve their competitiveness in both domestic and international markets, and ultimately develop the industry together and achieve  prosperity in the whole industry.

In a keynote delivered at the opening ceremony of the CISCE on Tuesday, Chinese Premier Li Qiang stressed Beijing’s stance against protectionism and called for strehenthened worldwide cooperation on suply chains. Li called China not just a participant and beneficiary of global industrial and supply chain cooperation, but also a firm defender and builder. China is willing to work with all parties to make the global industrial and supply chains more resilient, efficient and dynamic, and make greater contributions to promoting global economic recovery, development and prosperity, he said. The Premier put forward four proposals and one of them is to jointly build open and inclusive industrial and supply chains, highlighting a clear-cut stand against protectionism and various forms of "decoupling and supply chain disruption," and efforts to promote the green and low-carbon transformation of industrial and supply chains. Li urged entrepreneurs across the globe to play an active role in promoting the steady operation of the global industrial and supply chains, and added China will provide more convenience and better guarantees for enterprises to invest in the country.

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