Tesla Model Y has received a new round of development in China. Jiangsu provincial government included cars in its procurement list, the first known case in the country.

According to the procurement notice released by the Jiangsu provincial government in China on July 4, the Tesla Model Y has been included in the provincial government’s new energy vehicle procurement catalog. An undisclosed number of vehicles are planned for purchase in the 2024-2025 budget year. A statement published by the Jiangsu Provincial Government Procurement Center on June 6 revealed that it will be a rear-wheel drive Model Y made in Shanghai, priced at RMB 249,900 (about US$34,370).

This is the first time in history that a Tesla electric vehicle has been included in the Chinese government procurement catalog. Previously, the company’s cars were under the special supervision of the Chinese authorities and were even prohibited from entering critical facilities, such as the military. The status update for Tesla vehicles comes after the company’s locally produced vehicles were tested and found to comply with Chinese data security requirements. The China Association of Automobile Manufacturers (CAAM) announced this on April 28, the same day that CEO Elon Musk arrived in Beijing for a visit.

The procurement list also included other cars such as Huawei’s Wanjie M7, Changan UNI-K/Z, Roewe D5X, and Volvo XC40.

The procurement quotas include categories of sedans, off-road vehicles and SUVs, commercial vehicles and MPVs, pickup trucks, and medium and large-sized passenger vehicles, according to Pandaily. For SUVs, the price limit is set at RMB 250,000. The range requirement for electric vehicles exceeds 400 km (249 miles).

Model Y is the best-selling car in the world. The standard Tesla Model Y has a range of 554 km (344 miles). Its starting price in the Chinese market is RMB 249,900 (about US$34,370).

According to a statement released after an executive meeting of the State Council, on June 26, China will offer similar treatment to foreign and domestic companies that participate in large-scale equipment upgrades, government procurement, investment, and other areas in the country. The country will also strengthen the opening up of key sectors, remove all market access restrictions for foreign investment in the manufacturing sector, and launch a new round of pilot initiatives to further open up its services sector.

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