Tesla may recall all vehicles in China, push software patch for 1.68 million EVs to fix key issue

Tesla is recalling nearly all the cars it sold in mainland China over the past four years due to a software issue that might fail to detect when the bonnet is unlocked. This recall affects 1.68 million vehicles manufactured between October 17, 2020, and July 17, 2024, making it Tesla's largest recall in the region.

The State Administration for Market Regulation announced the recall on Tuesday, highlighting that an unlatched bonnet could obstruct the driver’s view and increase the risk of accidents.

Going strong despite recalls

Tesla plans to resolve the issue with an over-the-air software update. The recall covers Chinese-made Model 3 and Model Y vehicles, as well as Model S and Model X vehicles imported from the US. Independent analyst Gao Shen noted that the recall is not expected to impact Tesla’s sales and operations significantly.

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Earlier this year, Tesla recalled 1.6 million vehicles in China to address issues with its Autopilot assisted driver system, aimed at reducing the risk of crashes.

Despite these recalls, Tesla's deliveries in mainland China grew by 37 per cent last year, reaching 603,664 units, making China Tesla’s second-largest market after the US, where sales increased by 25 per cent to 654,888 vehicles in 2023.

Tesla’s dominance in China challenged

Tesla has been a dominant player in China's premium electric vehicle (EV) market since the Gigafactory 3 in Shanghai began delivering vehicles in January 2020. This factory, Tesla’s largest globally, produces the Model 3 and Model Y cars, which are also exported to markets like Japan.

However, Tesla has faced multiple challenges regarding the quality and safety of its cars in China. The company has had several disputes with mainland regulators and customers since 2021. Nonetheless, Tesla has strengthened its ties with Chinese authorities, especially after a visit by founder Elon Musk to Beijing in April.

Tesla became the first foreign carmaker to receive approval from Chinese data security regulators, with the China Association of Automobile Manufacturers recognizing the Model 3 and Model Y for meeting national security standards.

Tesla to try its hands on Full Self-Driving in China

Tesla is planning to test its Full Self-Driving autonomous driving software in China by the end of 2024. This move underscores Tesla's commitment to innovation and its efforts to maintain a competitive edge in the burgeoning Chinese EV market.

In summary, while the recall of 1.68 million vehicles in China represents a significant event, it is part of Tesla's broader strategy to ensure safety and quality. The company's continued growth in sales and strong market presence, coupled with proactive measures to address software issues, reflect its ongoing commitment to customer satisfaction and regulatory compliance in one of the world's largest automotive markets.