BEIJING (Reuters) – Tesla Inc registered an insurance brokerage firm in China in late July, according to a national enterprise information database, in a sign the U.S. automaker may be trying again to win approval to sell insurance products in the country.
The new company, located in Beijing’s central business district, was established on July 30 with a registered capital of 50 million yuan (6.92 million U.S. dollars), the National Enterprise Credit Information Publicity System showed.
Tesla had sought regulatory approval to sell insurance products in China more than three years ago when it registered as a company in 2020, but removed that registration in April this year.
Electric cars are very expensive to repair, posing a challenge for insurance providers accustomed to the demands of traditional combustion engine vehicles.
By selling insurance directly to consumers, Tesla may be able to offer lower-cost insurance products for electric cars, which are typically more expensive than those for gasoline-powered vehicles.
Tesla did not immediately respond to a Reuters request for comment.
China’s BYD (SZ:), Tesla’s biggest rival, won approval to acquire bankrupt online insurance unit Yi’an P&C Insurance Co in May.
China, Tesla’s second-largest market, has increased its support for the U.S. automaker, which plans to build a data training center and roll out its fully self-driving software in the country this year, despite ongoing tensions with the United States over technological rivalry.
Tesla received approval from the country’s largest auto industry association, which said in April that data collection by Tesla fleets in China was compliant. Tesla cars have since been allowed into some government and military compounds where they were previously banned.
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