Tesla makes details of repair and maintenance charges public for first time in China

February 23, 2021 ideaTechX

Tesla makes details of repair and maintenance charges public for first time in China-CnEVPost


Tesla makes details of repair and maintenance charges public for first time in China-CnEVPost


Tesla recently made public the details of repair and maintenance charges for the first time in China, and the common repair and maintenance price lists of different models have all been displayed on the walls of its service centers.


Tesla repair and maintenance prices are not high, most items are only about 50% of the price of traditional luxury cars such as Mercedes-Benz, BMW, and Audi.


The prices of these common maintenance items, as well as parts and electromechanical repairs, are kept uniform in all Tesla stores in China, which is completely different from the model of traditional auto 4S dealerships in the Chinese auto industry.


According to the price list of Tesla repair parts, the repair price of Model 3 is almost the same as that of ordinary Chinese and foreign joint venture brand vehicles, which is only about 50% of that of some luxury brand vehicles.


Tesla’s public information shows that the China-made Model 3’s covering parts are made of higher-cost aluminum alloy, such as doors and fenders.


Despite the higher cost of materials, repair prices are lower than luxury brand vehicles, mainly because stores in its direct model do not rely on after-sales profits, Sina Auto cited industry sources as saying.


“In the 4S store model we are familiar with, about 70 percent of the profit comes from after-sales,” he said. “It’s the main revenue pillar for stores, which is one of the reasons for the high prices of luxury car repair and maintenance.”


Tesla does not rely on after-sales for profitability; its service centers operate separately, saving channel costs with repair costs and improving the efficiency and quality of service, he claims.


Lower repair costs lead to lower insurance prices. The Tesla Model 3 costs roughly RMB 5,000 ($774) per year to insure, compared to about RMB 8,000-10,000 for the same class of traditional luxury brands.


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Tesla makes details of repair and maintenance charges public for first time in China-CnEVPost


Tesla makes details of repair and maintenance charges public for first time in China-CnEVPostTesla makes details of repair and maintenance charges public for first time in China-CnEVPost