US start-up Fisker hopes to crack Chinese EV market with rival to Tesla Model Y

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American EV start-up Fisker plans to open a retail outlet in Shanghai, its first in mainland China, as early as December, joining a fray of foreign and domestic carmakers vying to take on Tesla in the world’s largest electric car market.

The company, founded by Danish car designer Henrik Fisker, said in a statement on Thursday that the “Fisker Lounge” showroom will be located on downtown Taicang Road, and the all-electric Ocean sport-utility vehicle (SUV) – a potential rival to Tesla’s bestselling Model Y – will be available in China soon.

“The EV industry is rapidly growing in China, and we want Fisker to be positioned as one of only two pure foreign EV brands,” chairman and CEO Henrik Fisker said in the statement, referring obliquely to Tesla. “The Chinese customer deserves as much choice as possible, and we intend to provide it to them.”

The company said it is planning to open several showrooms in mainland China that will all be located in popular retail locations where consumers can experience the Fisker brand and get a closer look at its vehicles.

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The carmaker is already selling the Ocean SUV in the US and Europe. Last month, the 5,000th Ocean rolled off the production line at contract manufacturer Magna Steyr’s plant in Graz, Austria.

In June, Fisker’s top managers visited China to meet government officials and business leaders in Shanghai to discuss collaboration and opportunities, the company said in a statement in June.

“I believe we can get production up and running in China as early as next year, potentially adding capacity of 75,000 Fisker Oceans annually,” the CEO said at that time.

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The Ocean SUV starts at US$37,499 in the US, and competes with the entry-level version of Tesla’s Shanghai-made Model Y, which is priced at 263,900 yuan (US$36,114).

“China’s EV market is dominated by Tesla and a clutch of the country’s indigenous carmakers,” said Gao Shen, an independent analyst in Shanghai. “It will not be easy for foreign marquees to gain a market share here.”

Unlike drivers in Western markets who tend to prioritise mileage when they consider buying an electric car, Chinese motorists have a strong penchant for intelligent features such as voice-activated controls, facial recognition, over-the-air software upgrades, phone-linked features and self parking capability.

In April, UBS ­analyst Paul Gong forecast that deliveries of pure electric and plug-in hybrid cars in China will jump by 55 per cent to 8.8 million units this year.

Also on Thursday, Alibaba-backed IM Motors launched an electric SUV, the LS6, which starts at 229,900 yuan, another potential rival to the Model Y in the mainland market.

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The EV start-up, founded in 2020 by e-commerce giant Alibaba Group Holding, owner of the Post, SAIC Motor, the country’s largest home-grown carmaker, and state-backed property operator Shanghai Zhangjiang Hi-Tech Park Development, said it will also build a pure-electric sedan similar to Tesla’s Model 3, in the first half of 2024 to appeal to wealthy Chinese consumers.

Tesla’s Gigafactory in Shanghai delivered 12 per cent fewer vehicles in September as the electric-car giant upgraded the facility ahead of the launch of a revamped Model 3.

The factory in Shanghai’s Lingang free-trade zone delivered 74,073 Model 3 and Model Y vehicles in total last month, including exports, down from 84,159 units in August, according to the China Passenger Car Association.

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