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Tesla is renowned for its innovation and leadership in the electric car industry. As its market grows, Tesla faces new quality challenges, significantly as it expands its production and sales in China. To ensure long-term success in China, Tesla needs to develop a robust quality control and customer service system that can effectively address problems with car quality.
Tesla has faced quality issues with their vehicles in China, particularly with the brakes, which has caused customers to be increasingly wary of their safety. After multiple complaints were reported in February 2021, Chinese regulators called upon Tesla to investigate and resolve the matter quickly (Sun & Goh, 2021). This anxiety was amplified when a Tesla car crushed and killed two people in April 2021 (Pietsch, 2021). The driver’s family claimed that the brakes had malfunctioned, and the crash investigation revealed that the vehicle had been traveling at an elevated speed and the brakes were not used. In light of these events, Chinese customers are now questioning the trustworthiness of Tesla’s cars.
Tesla has had to confront some issues with the quality of its batteries in the Chinese market. Customers have reported that the batteries in their cars have spontaneously ignited, resulting in considerable destruction of their vehicles. In April 2019, a Tesla Model S burst into flames in a Shanghai car park, and the occurrence quickly circulated on Chinese social media (Shaban, 2019). This accident lowered Tesla’s reputation in China.
To take care of quality problems, Tesla ought to give precedence to safety and quality in its vehicles and put money into research and development to advance the proficiency and dependability of its breaking and battery systems. Additionally, Tesla should implement more meticulous testing procedures to identify and tackle quality issues before they become widespread. For instance, Tesla could employ more sophisticated simulation tools to evaluate the robustness and safety of its brakes and batteries before they go into manufacture. Moreover, Tesla should construct a more stringent quality control process to ensure that all vehicles adhere to the maximum safety and quality standards.
Tesla has been the subject of disapproval due to their inadequate customer service in the Chinese market (Jacobs & Chase, 2014). Per the 2021 China Customer Service Index (CSI) research conducted by J.D. Power, Tesla scored the least among all luxury brands regarding customer contentment (2021 China Customer Service Index, 2021). Tesla’s rating was 573 out of 1,000, much lower than the industry standard of 651.
To ameliorate customer service, investing in training customer service representatives and providing more available pathways for customers to voice concerns about quality and give feedback could be beneficial. For instance, Tesla could create a specific hotline or email address for Chinese clients to discuss quality issues or comment on their customer service experience. Additionally, Tesla should carry out routine customer surveys to recognize customer requirements and inclinations and utilize the data to upgrade its products and services. Furthermore, Tesla could contemplate instituting a system that grants commendable customer service, incentivizing customer service reps to provide the finest service.
The subsequent problem with Tesla is related to the high costs of Tesla cars in the Chinese Market. Tesla currently imports all of its vehicles to China, which makes its cars more expensive for Chinese customers due to import tariffs and shipping costs (Bloomberg, 2021). This puts Tesla at a disadvantage compared to other electric vehicle manufacturers, such as NIO and BYD, which have local manufacturing operations in China. Tesla should consider expanding its manufacturing operations in China to reduce costs and increase its competitiveness in the Chinese market.
Ultimately, Tesla has encountered several concerns about quality in the Chinese market, which has hampered customer contentment. Those problems incorporate issues with brakes and batteries, inadequate customer service, and the absence of local production. To address these worries, Tesla should stress safety and quality in its vehicles, invest in providing training to and supporting its customer service staff, and set up a local manufacturing base in China. Through these measures, Tesla can fortify its position in the Chinese market and raise customer satisfaction, thus helping it to reach its long-term ambitions.
References
2021 China Customer Service index (CSI) study. (2021). J.D. Power. Web.
Bloomberg. (2021). Tesla’s fall from Grace in China Shows Perils of betting on Beijing. Bloomberg. Web.
Jacobs, F. R., & Chase, R. B. (2014). Operations and Supply Chain Management. McGraw-Hill Education.
Pietsch, B. (2021). Two killed in driverless Tesla car crash, officials say. The New York Times. Web.
Shaban, H. (2019). Tesla investigates Model S explosion in Shanghai. The Washington Post. Web.
Sun, Y., & Goh, B. (2021). Chinese regulators call in Tesla over customer complaints. Reuters. Web.
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