Tesla strikes deal with China Unicom to build charging network

Chinese gadget lovers will soon be able to charge their Tesla sports cars for free while browsing for smartphones, after China Unicom signed an agreement to install charging stations for the California company’s electric vehicles at hundreds of retail outlets nationwide.

Tesla cars have begun appearing on the streets of Beijing and Shanghai ever since the electric vehicle manufacturer, founded by Elon Musk, made its first deliveries to Chinese customers in April.

China Unicom, which already partners Tesla Motors to provide internet connectivity for its vehicles in China, also used to be the mobile service provider of choice for another item coveted by local consumers: Apple’s iPhone. But China Mobile, the country’s biggest mobile operator, has this year fixed compatibility issues that frustrated iPhone users on its network, negating one of China Unicom’s biggest selling points.

Under the agreement, Tesla will provide charging points for installation at 400 China Unicom retail outlets in 120 cities, with the telecoms company responsible for maintenance and the cost of the electricity. The two groups will also build 20 “supercharging stations”, which are faster than the others. While Tesla has signed similar infrastructure agreements with Chinese property developers and hotels, China Unicom is its first retail partner.

Tesla’s charging stations may not be immediately compatible with other electric cars, highlighting one of the obstacles that has hindered sales in the world’s largest automotive market. Electric vehicles accounted for only roughly 20,000 of the 12m passenger cars sold in China – or less than 0.2 per cent – in the first half of this year.

“China’s [charging] standard is still being revised at the moment,” Tesla said. “We will be compatible with the Chinese national standard when it becomes official.”

Tesla, BMW, Daimler and other multinational car manufacturers are positioning themselves for what they hope will be an upsurge in demand for electric vehicles, spurred by a raft of new government policies designed to encourage sales of environmentally friendly cars.

Most of the policy support – including further tax breaks unveiled by the ministry of industry and information technology on Friday – is directed at locally produced electric vehicles rather than Teslas and other imports.

On Tuesday Daimler revealed its new Denza electric vehicle, made in China in co-operation with Shenzhen-based BYD, while BMW will begin selling imported i3 and i8 cars in China next month.

Tesla and BMW will only sell their electric vehicles to Chinese customers who have access to charging facilities at either their homes or offices, while Daimler and BYD include installation of a charging unit as part of their Denza package.

With home or office charging, drivers can reliably use electric vehicles for commuting and other intracity journeys, but many worry about the lack of a public charging infrastructure for longer trips. “You have to have a good infrastructure for users’ peace of mind,” says Hubertus Troska, head of Daimler’s China operations.