Tesla Gigafactory 3 Shanghai will gain an advantage in Beijing, once the city sets its new BEV license quota in motion. Beijing has wanted to boost the number of electric vehicles on its roads for quite some time and may have come up with a plan to do so.

According to local media sources, Beijing plans to release special licenses for battery electric vehicles (BEVs) got boost sales of electric-powered cars after the pandemic. The city government of Beijing usually sets a quota of 50,000 new vehicle license plate registrations per year. The Beijing city government has reportedly set a 100,000 purchase target for BEVs.

Beijing’s BEV target could positively impact the demand for Tesla’s MIC Model 3 Standard Range. The American automaker has started to gain more traction in the Chinese auto market since it finished constructing Phase 1 of Giga Shanghai.

Demand for Tesla’s locally-made Model 3 Standard Range Plus received a boost from several government incentives, including a purchase tax exemption. The MIC Standard Range Plus hits the right psychological price point for the majority of Chinese car buyers interested in purchasing a sedan.

Tesla Giga Shanghai Production Rate Exceed 3K Per Week, Phase 2 Continues Rapidly https://t.co/6gf0n1dLHH pic.twitter.com/BhqgrI51dF — Tesmanian.com (@Tesmanian_com) March 22, 2020

City governments in China, like Beijing, Shanghai, Shenzhen, and Guangzhou, have set rigid restrictions on the issuance of license plates to prevent road congestion and decrease pollution. In 2019, China’s State Council advised major city governments to place fewer restrictions or completely lift their strict license plate regulations to help boost car sales in the country.

China has become one of the largest auto markets in the world, and auto sales have helped the country’s economic expansion in the last decade, reported Caixin Global. However, car sales were adversely affected when major city governments set strict quotas on the number of license plates issued to drivers.

Of course, the city governments had valid environmental reasons to establish car regulations. BEVs and other new-energy vehicles would solve the discrepancy between the needs of the nation of China and the needs of its city governments.

Electric cars are an excellent way to maintain auto sales that would not have a negative environmental impact in major cities. And Tesla, as the emerging leader of the global EV market, can fill China’s demand for BEVs.

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