China faces protests by EV owners missing out on price cuts

CHINA: Owners of electronic vehicles manufactured by Tesla have erupted in protest against the automobile giant after missing out on availing price cuts by the company to boost sales, Malaysian news outlet, The Star, reported, adding that the car owners have claimed that they had to pay more for cars that are now selling a lot cheaper.

Posts have flooded China's social media platforms showing the anger and frustration of vehicle owners.

While Tesla has not officially responded to the ongoing protests in China, the auto-maker, on January 6, slashed the price of its 'Y' model by about 14 per cent and the base model by about 10 per cent, the report said.

The Star report further mentions that after shipping a record of more than 100,000 China-made EVs in November, Tesla deliveries dropped sharply in December to below 56,000 amid lacklustre demand and also with local production temporarily suspended for equipment upgrades.

China has been a key market for Tesla and the company enjoyed several perks and tax benefits when it opened its factory in Shanghai. Chinese President Xi Jinping's draconian 'Zero Covid' policy is the reason why the country is heading into recession, Valerio Fabbri writes in a Slovenian publication Portal Plus citing Chinese citizens.

A Beijing-based citizen said, "I can feel the recession around me. Obviously, the economy is heading down. Fewer people in shopping malls, the disappearance of small businesses and higher prices for daily goods are better proof than official data.

It is just a catastrophe now, not because of Covid but because of stupid policy." China, whose draconian 'Zero Covid' policy and brutal lockdowns have drawn public ire and even spawned street protests, has also had to face an economic fallout with ripple effects across the globe.

In November, a protest erupted at Foxconn's flagship iPhone plant in China, with male and women employees captured in a viral clip marching. Some of the protesters were confronted by people in Hazmat suits and riot police, Reuters reported citing videos on social media. There was further unrest at the Foxconn unit in Zhengzhou city, with workers, according to reports, frustrated over delayed bonus payments.

Following a major Covid-19 outbreak in October, which led to a majority of workers leaving the factory compound out of fear of barbaric methods adopted to deal with these situations, the manufacturer held an employment drive that ultimately received over 100.000 applicants, according to Portal Plus.

Matters took a turn for the worse when incoming employees were promised a bonus payment of 3000 yuan after 30 days on the job, with another 3000 yuan to be doled out at the completion of 60 days, a report said, adding that it turned out to be a hollow promise.

Foxconn has since gone as far as to pay the workers two months of wages (USD 1400) to quit and leave the facility, the report said, adding that the drastic step came after protests by the workers were met with brute force and suppression at the hands of the authorities.