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Tag: Local

  • Australia’s Growing Craving for Authentic Italian Fare: A Boon for Local Importers

    Australia’s Growing Craving for Authentic Italian Fare: A Boon for Local Importers

    Italian food has consistently been a staple for Australian consumers, wholesalers, and retailers. However, the reasons for this popularity are shifting. While items like pasta, olive oil, and cheese continue to be popular, consumers are more interested in the origins, production methods, and authenticity of these products.

    This shift in consumer behavior is opening new avenues for businesses that can provide authentic ‘Made in Italy’ products. Simona Bernardini, Trade Commissioner and Director of the Italian Trade Agency (ITA) in Sydney, has noted these developments.

    Recent statistics indicate a growing demand for these products. Accounting data shows that Australia’s imports of Italian food and beverage products amounted to $1.47 billion in 2025, making up 5.5% of total imports in the category. This makes Italy Australia’s fourth-largest supplier of these goods.

    Bernardini mentioned that Italian products, including processed tomatoes, pasta, cheese, olive oil, sauces, wine, and premium bakery products, continue to perform well. This reflects a growing appreciation for authentic, high-quality food that is strongly connected to its origin.

    The recently concluded Australia-European Union Free Trade Agreement is expected to further bolster this bilateral trade by reducing barriers for exporters and creating more opportunities for Australian buyers.

    A Strategic Export Market and Premium Credentials

    Australia is not just a destination for Italian food exports, but also a gateway market for broader growth across the Asia-Pacific region. The country offers a stable economic environment, a sophisticated retail sector, and consumers with a growing appreciation for authentic, high-quality imported food products.

    As consumers pay greater attention to the origin and production methods of their food, premium, sustainable, and traceable food is in high demand. European quality schemes like Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI) provide strong guarantees of authenticity, traceability, and production standards. These certifications are becoming increasingly valuable to Australian consumers looking for genuine and premium food experiences.

    Building Resilient Supply Chains and Supporting Long-term Partnerships

    Despite the growing demand, global supply chains are under pressure due to geopolitical uncertainty and increased freight costs. Italian exporters have responded by becoming more agile and collaborative, diversifying transportation routes, and investing in efficient supply chain management practices.

    For Italian businesses looking to enter the Australian market, understanding Australia’s regulatory environment and building local partnerships is crucial. Bernardini advises that companies must consider biosecurity requirements, labeling regulations, logistics costs, pricing strategies, and finding the right importer or distributor.

    The Italian Trade Agency’s Sydney office plays a vital role in this, providing market information, sector insights, guidance on local requirements, identification of potential business partners, and promotional opportunities.

    Trade exhibitions, such as Fine Food Australia, are effective ways for Italian producers to connect with Australian retailers, importers, distributors, and foodservice operators. The Italian National Pavilion, organized by the Italian Trade Agency’s Sydney office, promotes the diversity and innovation of the Italian food and beverage sector, further strengthening commercial and institutional relationships between Italy and Australia.

    The Pavilion, which will host 23 Italian companies, will give Australian buyers access to internationally recognised brands and smaller regional producers. Bernardini emphasizes that the Pavilion is not just a showcase of Italian products but also representative of the robust partnership between Italy and Australia in the food and beverage sector.

    Questions & Answers

    What has led to the change in Australian consumers’ preference for Italian products?
    Consumers are now more interested in the story behind the products – their origins, production methods, and authenticity.

    What role does the Italian Trade Agency’s Sydney office play for Italian businesses entering Australia?
    The agency provides market information, sector insights, guidance on local requirements, identification of potential business partners, and promotional opportunities.

    How do Italian producers connect with Australian buyers and retailers?
    Trade exhibitions, such as Fine Food Australia, are an effective platform for Italian producers to directly present their products to Australian buyers, distributors, retailers, and food service operators.

  • Australian Kensington Pride Mangoes Skyrocket in Vietnam: 7.5 Times Costlier than Local Produce

    Australian Kensington Pride Mangoes Skyrocket in Vietnam: 7.5 Times Costlier than Local Produce

    Kensington Pride mangoes, originally from Australia, have been on sale in Vietnam at an astounding price — VND600,000 (US$22.8) per kilogram, which is 7.5 times more than the price of the local variety. A store owner in Dinh Bo Linh Street, located within the Binh Thanh Ward of Ho Chi Minh City (HCMC), revealed that a seven-kilogram box of these mangoes could bring in a whopping VND 3.7 million.

    Importing Exotic Fruits

    The store owner started importing these mangoes just recently, in late October, and has been conservatively buying only five boxes at a time due to the steep costs of transportation and storage. The Kensington Pride mangoes are characterized by their weight, approximately 500-600 grams per fruit, and their firm flesh and high sugar content that accounts for their exceptional sweetness.

    Similarly, an employee from a store in Hanoi’s West Lake region, which also sells the fruit at the same high price, mentioned that these mangoes need to be kept chilled at all times, which further adds to their cost.

    The Allure of Australian Mangoes

    The Australian mango variety, known for its brilliant golden flesh and gentle aroma, is primarily imported to Vietnam via air. It is also widely cultivated in the Mekong Delta region, specifically in the Tien Giang and Dong Thap provinces along with the Can Tho city. The locally grown variety is sold for VND20,000-25,000 per kilogram at the farm gate and VND80,000 at retail stores.

    In Australia, these mangoes flourish in dry climate regions like certain parts of Queensland and the Northern Territory. The harvest typically happens between October and December. Major Australian supermarkets such as Woolworths, Coles, and Harris Farm usually sell these mangoes for $6.7-8 per kilogram.

    Surge in Fruit and Vegetable Imports

    According to statistics from the customs department, the import of fruits and vegetables from Australia to Vietnam surpassed $100 million in the first nine months of this year, marking a 27% increase from the previous year. Mangoes, followed by cherries, grapes, mandarins, and oranges were the most imported items, each carrying a hefty price tag in Vietnam.

    Questions & Answers

    Why are Kensington Pride mangoes so expensive in Vietnam?
    The high cost is due to the import and cold storage charges, which makes the fruit more expensive than the local variety.

    What makes Kensington Pride mangoes different from other varieties?
    These mangoes are known for their bright golden flesh, mild aroma, and a distinct sweetness. They are also larger in size, weighing approximately 500-600 grams per fruit.

    Which fruits are the most imported from Australia to Vietnam?
    Mangoes top the list, followed by cherries, grapes, mandarins, and oranges. They all carry a high price tag in Vietnam due to import costs.

  • Thailand to Levy Taxes on All Foreign Online Purchases in Boost to Local Businesses

    Thailand to Levy Taxes on All Foreign Online Purchases in Boost to Local Businesses

    Beginning January next year, Thailand will impose taxes on all foreign goods sold through online platforms, thereby ending the current exemption on low-value imports priced under 1500 baht (US$46.30).

    Creating a Fair Market

    According to Panthong Loikulnan, the Director-General of the Customs Department, the objective of this move is to level the competition for local businesses and increase government revenue. The current situation gives foreign goods an edge over Thai businesses, putting Small and Medium-sized Enterprises (SMEs) at a disadvantage.

    New Tax System for Imports

    The newly instated system will subject all imported goods, regardless of their value, to customs duties and Value-Added Tax (VAT) as required by the law. This change supersedes the existing tariff exemption, which will be phased out by the end of this year.

    Goods priced below 1500 baht currently represent over 30 billion baht ($927 million) in annual imports. Loikulnan estimates that imposing an average 10 per cent duty could generate at least an additional 3 billion baht ($92.7 million) in government revenue each year.

    The proposed system will primarily rely on data verification from online platforms and random inspections to ensure compliance. Furthermore, Thailand’s customs department is currently in discussions with major e-commerce operators to directly link their sales and import data.

    Protecting Domestic Retailers

    Loikulnan believes that this reform will help establish a fair market for domestic retailers who are already paying taxes and are particularly impacted by the wave of low-cost imported products.

    In his opinion, delaying the implementation of such a system would put Thailand at a disadvantage since many other countries are grappling with the same issue: domestic sellers pay taxes, while foreign goods are imported tax-free.

    Lump-sum Tax Proposal

    For the long term, Loikulnan suggests introducing a “lump-sum tax”, which implies a flat rate of 20 to 30 per cent per imported package. This would simplify the system and increase efficiency. However, he acknowledges that such a change would necessitate legislative amendments and would take time to implement.

    Questions & Answers

    What is the objective of Thailand’s new tax system?
    The aim is to level the playing field for local businesses and increase government revenue.

    How will the new system work?
    All imported goods, regardless of their value, will be subject to customs duties and VAT. The system will rely on data verification from online platforms and random inspections to ensure compliance.

    What is the proposed “lump-sum tax”?
    The “lump-sum tax” refers to a flat rate of 20 to 30 per cent per imported package, suggested as a long-term solution to simplify the system and increase efficiency.

  • Thailand Abolishes Tax Exemptions for Online Purchases from Abroad: A Boost for Local Businesses

    Thailand Abolishes Tax Exemptions for Online Purchases from Abroad: A Boost for Local Businesses

    Thailand is set to impose taxes on all foreign goods sold through online platforms starting from January of next year. This move marks an end to the existing exemptions granted to low-value imports that are priced under 1500 baht (US$46.30).

    Creating a Fair Business Environment

    Panthong Loikulnan, the director-general of the customs department, has said that the motivation behind this change is to establish a more level playing field for local businesses and to increase government revenue. He stated, “The absence of duties grants foreign goods an advantage over Thai businesses. This is particularly unjust to our SMEs.”

    In the new system, all imported goods, regardless of their value, will be subject to customs duties and value-added tax (VAT) as mandated by law. This change is set to replace the existing tariff exemption which is due to expire at the end of this year.

    Currently, imported goods priced below 1500 baht account for over 30 billion baht ($927 million) in annual imports.

    Loikulnan has indicated that enforcing an average 10 per cent duty could generate at least an additional 3 billion baht ($92.7 million) in government revenue each year.

    Ensuring Compliance

    The system will primarily depend on data verification from online platforms. Random inspections will also be carried out to ensure compliance.

    Thailand’s customs department has been engaging in discussions with major e-commerce operators, including Shopee and Lazada, to directly link their sales and import data.

    Loikulnan stated that this reform will assist in leveling the playing field for domestic retailers who are already paying taxes, particularly the small and medium-sized enterprises that are affected by the surge of low-cost imported products.

    He expressed concerns about the delay in implementing this process, stating that, “If we procrastinate, we will find ourselves at a disadvantage because all other countries are beginning to face the same issue: domestic sellers pay taxes, but foreign goods are imported tax-free.”

    Future Suggestions

    For the longer term, Loikulnan suggested introducing a “lump-sum tax”, which would be a flat rate of 20 to 30 per cent per imported package. He believes this would help simplify the system and increase its efficiency. However, he noted that such a change would necessitate legislative amendments and would require time to implement.

    Questions & Answers

    What is the motivation behind the imposition of taxes on foreign goods sold online?
    The introduction of the tax is aimed at creating a level playing field for local businesses and increasing government revenue.

    How will the system ensure compliance?
    The system will primarily depend on data verification from online platforms, with random inspections being carried out to ensure compliance.

    What is the ‘lump-sum tax’ that is being suggested for the longer term?
    The ‘lump-sum tax’ refers to a flat rate of 20 to 30 per cent per imported package. This is aimed at simplifying the system and increasing its efficiency.

  • South Korean Pizza Chain Gopizza Enters Malaysian Market Through Hextar Group Partnership

    South Korean Pizza Chain Gopizza Enters Malaysian Market Through Hextar Group Partnership

    GoPizza, a popular pizza chain based in South Korea, has finalized a master franchise contract with the Hextar Group, marking its debut in the Malaysian market.

    First Outlet Launch

    The company anticipates that the first Malaysian branch will be up and running either at the end of the third quarter or the beginning of the fourth quarter in 2021.

    GoPizza’s founder and CEO, Jay Lim, expressed his trust in the Hextar Group as a robust partner to facilitate the introduction of GoPizza in Malaysia. He expressed his excitement about the future collaboration with the Malaysian group.

    Hextar Group’s Partnerships

    The Hextar Group is not new to partnerships with international brands. They also partner with Luckin Coffee, a reputable coffee company from China. This has significantly boosted their portfolio in the food and beverage industry.

    GoPizza’s Rapid Growth

    GoPizza’s development has been swift and impressive, especially with its recent expansion into over 200 GS25 convenience store locations throughout South Korea last year. This followed a successful pilot program at GS25 The Gwan-Ak branch in Seoul, further solidifying their foothold in the market.

    The brand initially launched as a food truck and earned a reputation for its quick, personal-sized pizzas, ready in less than five minutes. The company now operates more than 1,200 outlets in various countries including South Korea, India, Singapore, Indonesia, and Thailand.

    Questions & Answers

    What is the origin of GoPizza?
    GoPizza originated as a food truck in South Korea, where it quickly gained fame for its personal-sized pizzas that are ready in under five minutes.

    What countries does GoPizza currently operate in?
    GoPizza currently has more than 1,200 outlets in South Korea, India, Singapore, Indonesia, and Thailand.

    What is the significance of GoPizza’s partnership with the Hextar Group?
    The partnership with Hextar Group marks GoPizza’s expansion into the Malaysian market. This collaboration will help introduce the GoPizza experience to a new audience and further its growth in the food and beverage sector.

  • Local car market still sees sluggish sales as Tet nears

    Local car market still sees sluggish sales as Tet nears

    The domestic auto market in Vietnam is experiencing a decline in car sales due to sluggish customer demand compared to previous years, according to local car experts.

    The experts said the number of customers visiting car dealerships has not increased compared to previous years, despite price reductions and promotions offered by car manufacturers during the peak shopping season.

    According to a car sales staff at Toyota dealerships in the central area of Hanoi, cars priced under VND1 billion (US$40,983) are particularly challenging to sell. They attribute this trend to the difficult economic conditions and the reluctance of people to spend money on purchasing cars.

    Anh Duc, a car salesman in Pham Hung Street, expressed surprise at the low sales, mentioning that in previous years, they could sell hundreds of cars each month at this time, but recently the numbers have not been reaching even half of that.

    Many dealers hope that demand for cars will increase at the end of the year and the market will become boisterous; however, it is so far still quiet. To reduce their inventory and recover some of their costs, dealers may resort to reducing prices and offering discounts or incentives to attract buyers. In some cases, they may even have to sell cars at a loss to move inventory and free up capital.

    Car consumption in Vietnam has experienced a deep decline this year, despite various efforts to stimulate sales such as launching new models, offering discounts, and providing registration fee support and attractive gifts.

    Specifically, Toyota Vietnam has initiated a program starting in December to offer a 50% discount on registration fees for certain car models. In addition to this discount, there is also a 50% reduction in registration fees for domestically assembled cars as part of the general policy. This policy will be in effect until the end of 2023.

    Honda Vietnam has also announced a 50% registration fee discount program for all car models on sale starting from Dec. 5. Additionally, domestically produced and assembled vehicles are still receiving 50% registration fee support from the government.

    As for Hyundai, the Hyundai Stargazer model had a listed price of VND75-685 million ($23,565-$28,073). In November, the price was reduced by up to 130 million, but it still faced difficulties in selling. In December, the price was further reduced by another VND10 million. Furthermore, the high-end diesel version of the Santa Fe model, which was produced in 2022, is being reduced by VND210 million.

    The decrease in car purchasing power compared to the same period in 2022 is a concerning trend, especially considering that car sales were lower than during the period when the market was affected by the Covid-19 pandemic.

    The statistics from the Vietnam Automobile Manufacturers Association (VAMA) indicate a significant decline in car sales, with a 29% decrease in the first 10 months of 2023 compared to the same period last year, equivalent to the absolute number of 70,000 vehicles.

    Among the car manufacturers, Toyota Vietnam seems to be the most affected, with a 42% decrease in sales during the first 10 months of 2023, amounting to nearly 30,300 vehicles. Other brands like Kia, Honda, and Mitsubishi also experienced significant declines, with decreases of 39%, 36%, and 28%, respectively.

    Hyundai is another car company facing challenges, with a sales decrease of approximately 25%, equivalent to more than 16,000 vehicles. These figures suggest that the automotive market in Vietnam is currently facing obstacles and uncertainties.

    Economist Ngo Tri Long said that the selling prices of many car models have reached their lowest level in nearly 10 years in 2023.

    Some businesses and dealers may have hinted at cutting incentives at the end of the year due to anticipated increased demand; however, car discount promotions are still prevalent and becoming even deeper.

    The difficulties are expected to continue into 2024. High inventory levels can also be a challenge for auto businesses. If consumer demand is lower than expected, dealerships and manufacturers may face excess inventory, which can lead to increased costs and reduced profitability, according to industry insiders.

  • ZTE assists in first 5G local traffic offloading pilot in China’s mining industry

    ZTE assists in first 5G local traffic offloading pilot in China’s mining industry

    ZTE Corporation, a major international provider of telecommunications, enterprise and consumer technology solutions for the Mobile Internet, together with China Unicom and Shandong Energy Beidou Tiandi, today has completed the first 5G local traffic offloading pilot in the mining industry in Shandong Province, China.

    With private network coverage as the test target, the pilot employs “5G+NodeEngine” base station-level local offloading, customized for China Unicom Shandong Branch, to bring the mining services a private network. The pilot, in bid to ensure data transmission security and nearest local access, has tested and verified two major functions of ZTE’s NodeEngine solution: local traffic offloading of base station and local inter-connection with eBridge.

    The video monitoring data is sent to the underground integrated control center directly through the intelligent offloading module, so as to reduce the latency by more than 50%. At the same time, ZTE’s NodeEngine solution, combined with the air-interface keep-alive strategy, ensures that the core production services will not be affected when the underground and ground optical fibers are disconnected. Moreover, local inter-connection with eBridge can realize control and equipment management among production devices and between the control end and remote terminals.

    By virtue of ZTE’s NodeEngine solution, ZTE’s 5G base station has been empowered with powerful computing capability to offload the local traffic. Meanwhile, the NodeEngine solution helps further strengthen the data transmission security, safeguard the production when the optical fibers are disconnected, and realize the fast and low-cost service provisioning.

    Moving forward, the three parties will be committed to the customer and demand-oriented innovation investment, expecting to accelerate the in-depth development and expansion of 5G technology in the mining industry and assist enterprises achieve fast deployment of digital application.

  • Zomato takes over Uber Eats in India

    Zomato takes over Uber Eats in India

    Local food-delivery app Zomato has purchased Uber Eats in India.

    “We are proud to have pioneered restaurant discovery and to have created a leading food-delivery business across more than 500 cities in India,” said Zomato CEO Deepinder Goyal. “This acquisition significantly strengthens our position in the category.”

    The purchase was made via an all-stock transaction, which awards Uber 9.99 percent ownership of Zomato.

    “India remains an exceptionally important market to Uber and we will continue to invest in growing our local Uber Rides business, which is already the clear category leader,” said Uber CEO Dara Khosrowshahi. “We have been very impressed by Zomato’s ability to grow rapidly in a capital-efficient manner and we wish them continued success.”

    Uber Eats in India has discontinued operations and is now directing restaurants, delivery partners, and users of the Uber Eats apps to the Zomato platform.

  • Local retailers must prioritize selling online for 2017

    Local retailers must prioritize selling online for 2017

    As first blush, the arrival of transnational retailers in the metropolitan centres of Vietnam appears to be a boon for consumers who want wider choices and a death sentence for local retailers, most of whom are small.

    These local smallholders suddenly find themselves facing foreign rivals wielding a daunting array of advantages including – substantial financial resources, advanced technology, superior products, powerful brands, and professional staffs with seasoned marketing and management skills.

    Most of these small business owners think they cannot compete with their larger foreign rivals and are left calling on the government to reinstate trade barriers or provide some other form of support.

    Still others seek strategic alliances with the so-called ‘big and mighty’ transnationals, while a significant number of local companies just throw in the towel and shutter their doors.

    But experts advise that small retailers by the tens of thousands around the globe have managed to develop winning strategies to successfully defend their home turf against the same brand name transnational retailers the likes of Lotte, AEON, MM Mega Market and Big C that are gaining market entry into Vietnam.

    Defending with the Home Field Advantage

    The key to success say the owners of these small but successful companies is to concentrate on the advantages they enjoy in their home market.

    In the face of aggressive and well-endowed foreign competitors, they with near unanimity suggest to local retailers that they will do better by focusing on consumers who appreciate the local touch and ignoring those who favour global brands.

    Give effect to a strategy that concentrates on the large group of consumers who remain loyal to traditional products and stock the store shelves with brands positioned around beliefs in long-standing Vietnamese ingredients.

    Recognize the importance of Online Sales

    Recognize that the internet continues to attain more and more users with each passing month and online sales is growing faster than any other retail sector in Vietnam, say the experts. Local retailers should expect this trend to continue and recognize that their business needs to be part of it.

    The internet is growing very fast in Vietnam, says Vu Xuan Truong from the Institute for Brand and Competitiveness strategy. Nearly 50 million Vietnamese use the internet frequently to make purchases and internet sales are on a steep upward trajectory.

    With more than 60% of today’s youth shopping online and that percentage expected to grow at an astronomically fast rate, local retailers in Vietnam cannot afford to underestimate the importance of selling online.

    Truong says that 2017 should be the year that all local retailers throughout the country set up shop online and discover how to drive online domestic sales and access new export markets via social media, search engine optimization and ecommerce.

    Local retailers need to understand that the internet is the biggest supermarket in the country (and the globe). If they want to compete in retail with the large transnational retailers making market entry into Vietnam— they must be online.

    Truong adds that if they are not online, they simply cannot win in retail in Vietnam or anywhere around the globe.

    Though selling products online may seem a little daunting at first, a beautifully designed and developed website is indispensable for all local retailers in Vietnam, says Le Doan Hop, president of the Digital Communications Society.

    Local retailers must learn to master web technology to help their businesses increase sales utilizing an effective ecommerce online sales strategy if they are to successfully compete with the large transnational retail giants in this digital age, Hop concludes.

  • Ministry tells Indonesian airliners to hire 900 jobless local pilots

    Ministry tells Indonesian airliners to hire 900 jobless local pilots

    The Transportation Ministry has said as over 900 Indonesian pilots having not been able to gain employment with local airliners, the ministry is planning to impose a new obligation to ensure higher absorption of local pilots by the airline industry.

    “This is a big problem. At least 900 local pilots have no jobs. This will be our homework, to create opportunities for them,” Transportation Minister Budi Karya Sumadi said on the sidelines of the Air Transportation Safety Campaign at the ministry’s office on Sunday.

    Budi said his ministry would require local airliners to employ local pilots, while promising that the ministry would also help improve the competence of the pilots through further training.

    “There has to be an obligation for local airliners to take on local pilots,” he added.

    In addition, the ministry would give impose stricter requirements to foreign pilots working at local airliners.

    “We should impose certain requirements for foreign pilots working in Indonesia,” he added.

    Reportedly, 564 foreign pilots are currently working in the country.

  • DHL encourages employees to help local communities

    DHL encourages employees to help local communities

    Deutsche Post DHL calls upon its 500,000 employees to participate in Global Volunteer Day (GVD) for the sixth year in a row. During this year’s official GVD period, employees from all business units will again team up with independent organizations and charities to help in numerous non-profit projects to benefit the local communities in which they live.

    As Christof Ehrhart, Executive Vice President of Corporate Communications and Responsibility at Deutsche Post DHL Group, explains, the Global Volunteer Day 2016 motto – “Working Together for a Better World” – stresses the importance the company places on collaboration: “Employee volunteerism lies at the core of our efforts to connect people and improve their lives. Our GVD activities highlight the fact that when our employees join forces, not only do they donate their energy and skills to help their local communities, but they also grow together as a team. They achieve common goals, they enjoy and are proud of what they do, and they incorporate the GVD spirit into their daily work.”

    In addition to a wide range of specially planned activities for the core GVD period, many employees remain active year-round, cementing lasting ties with the charitable organizations with which they work. Entirely separate from GVD, more than 13,000 Deutsche Post DHL Group employees in Germany have volunteered to participate in initiatives to help refugees. The Group thus operates a dedicated fund to which employees can apply for financial support on behalf of the projects they themselves commit to all year round.

    The vast majority of GVD projects at Deutsche Post DHL Group focus on one or other of the company’s long-standing GoTeach, GoHelp and GoGreen initiatives. Many activities take place in kindergartens and schools, while others take the form of job application workshops.

    However, others see employees volunteer to help people in need, becoming involved in restructuring efforts to rebuild homes in the wake of natural disasters or by organizing donation drives. And as environmental protection remains a major concern for many employees, some choose to plant trees, clean waste from beaches and parks, and support the upcycling trend by turning old, discarded materials into something useful and new.

    Deutsche Post DHL Group launched Global Volunteer Day in 2008. By 2015, over 110,000 employees were involved in providing support to non-profit projects in their local communities as part of the GVD program, contributing more than 260,000 volunteer hours in more than 2,000 individual projects in 114 countries around the world. As an integral component of our Corporate Citizenship activities, Global Volunteer Day supports our sustainability strategy to serve the company’s economic interests and those of our stakeholders’ while balancing these with social and environmental needs.

  • Tesla Motors Wants Local Production in China

    Tesla Motors Wants Local Production in China

    It’s no secret that electric-car maker Tesla Motors is ramping up its efforts in China. Despite some initial challenges in the country when the company launched in the market in 2014, it still believes China could be one of its largest vehicle markets “within a few years,” according to its most recent 10-Q filing. And an update from Musk this week on Tesla’s plans in China, as well as a look at sales in Hong Kong, suggests it is as eager as ever to serve these important Asian markets.

    Tesla China

    Aiming to secure a factory location this year Tesla “aims to lock down manufacturing plans finding a local partner and a location for the plant — for the local market by the middle of this year,” wrote Engadget’s Richard Lai on Monday.

    The company plans to launch a factory in China “as soon as a year after” the Model 3 launch, which is set for late 2017, Musk said on Twitter last October. Securing a local partner and a location for its plant by the middle of this year would give Tesla plenty of time to meet this time frame.

    Musk hopes China will nix its “prohibitively high” auto import duties for the Model 3, making “a special category for EVs,” he explained last year on Twitter. Musk explained that these are natural moves for the company in order for it to “improve in-market affordability.”

    A China factory will be built to serve local Chinese demand and the company will continue to make cars and batteries in California and Nevada.

    Rising investments and rising demand
    Following its poor start in China in 2014, there was quite a bit of uncertainty about Tesla’s potential in the country last year. But a look at Tesla’s commentary on the market throughout 2015 suggests it experienced considerable growth in the market in terms of sales, demand, and investments.

    On a quarter-to-quarter basis, orders in Q2 “doubled” and orders in Q3 “increased substantially,” the company noted in its second- and third-quarter shareholder letters. Going forward, Tesla said in its third-quarter shareholder letter that it expected “order growth in China to remain strong.”

    Along with this rising demand, there are now over 340 Superchargers and 1,600 Destination Chargers in the country.

    One area of investment for the company in China has been with its retail stores. In August 2015, Tesla had just one retail store located in a high foot traffic area in the market and said it planned to have five by the end of the year. With 15 stores in the country now, the company appears to be exceeding its plans for a retail expansion there.

    Hong Kong First Tesla

    Tesla’s investments in Hong Kong, where it currently has three retail stores, are also surprising. Lai provides a glimpse of the company’s robust charging network in the market, along with a rare breakdown of sales for the region:

    Hong Kong in particular has 42 Superchargers, making it the city with the highest density of Tesla’s rapid charging stations; this is on top of the 75 destination chargers there. It’s no wonder that last year the company managed to sell 2,221 Model S in Hong Kong alone, which made up over 80 percent of the local electric vehicles that year. To put things into perspective, that’s also 4.39 percent of Tesla’s total global shipment in the same period.

    This is considerable progress considering the company didn’t launch in Hong Kong until the second half of 2014.

    China and Hong Kong both look poised to represent key catalysts for Tesla in 2016.

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    Daniel Sparks owns shares of Tesla Motors. The Motley Fool owns shares of and recommends Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.