- China is suspending customs clearances and the sale and use of Tesla’s Model 3 car in the country because of improper labelling, the Chinese news agency Caixin reports.
- Citing Caixin, Reuters said the customs authority in Shanghai had found “various irregularities” in 1,600 imported Model 3 cars. Caixin said that “some of the vehicles lacked product labels that would make them legal on the Chinese market.”
- Deliveries of the Model 3, Tesla’s cheapest model, had been set to begin in the country this month.
China is suspending customs clearances and the sale and use of Tesla’s Model 3 car in the country because of improper labelling, according to a report from the Chinese news agency Caixin on Tuesday.
Citing Caixin, Reuters said that customs officials in Shanghai reported finding “various irregularities” in 1,600 Model 3s set for delivery in China, including the improper labelling of the cars.
The irregularities, Caixin said, included that “some of the vehicles lacked product labels that would make them legal on the Chinese market.”
“Some of the vehicles had no Chinese labels on brake fluid tanks, while some demonstrated a real motor capacity that differed from the one on the label,” Caixin added.
A Tesla spokesperson told Business Insider that the issues were due to a printer error and have since been rectified.
“This error resulted from misprinted labels on certain Model 3 vehicles. We have already reached a resolution with Chinese customs, and we are working closely with them to resume clearance procedures on these vehicles,” Tesla said
“Sales of Model 3 in the country are not impacted, and we continue to deliver Model 3 vehicles that have already been processed.”
Tesla, which is aiming to increase sales in China, the world’s biggest market for autos, was set to begin deliveries of its cheapest car to customers in China this month. It appears that will now be delayed following the announcement, which came from Chinese customs authorities, Caixin said.
The report added that Tesla had been instructed not to sell or use any Model 3s that had already been cleared by customs.
Chinese authorities also said inspectors had been ordered “to step up inspections of other imported Tesla models” and block their clearance if similar problems were found, Reuters reported, once again citing Caixin.
The rollout of the Model 3 in China was put on an accelerated timeline late last year after Tesla expressed concern with the impact of trade tensions between Washington and Beijing. Tesla is also building a $US2 billion Gigafactory in Shanghai, a move that could shield the automaker from tariffs on cars exported from the US.
Tesla has cut the price for its Model 3 in China several times in recent months, with the starting price for the vehicle at 499,000 yuan ($US74,000).
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