Tesla recalls 1.68 mn EVs in China to repair faulty latches free-of-cost

Tesla's recall notice says that an unlocked trunk lid could open during driving, interfering with the driver's vision

Elon Musk-led electric car brand, Tesla, has recalled 1.68 million cars in China for a remote software upgrade. The announcement, made late on Tuesday, said that vehicles with faulty trunk latches will be repaired free of charge.

The recall has been made for some imported Model S and Model X vehicles. Apart from them, Tesla's Model 3 and Model Y cars manufactured in China between October 15, 2020, and July 17, 2024, have also been recalled.

The recall notice, as per an Associated Press report, says that an unlocked trunk lid could open during driving, interfering with the driver's vision. However, the notice doesn't mention whether any Tesla car faced this issue.

The US-based electric vehicle maker will fix the problem through a remote software upgrade, said China's State Administration for Market Regulation.

China, a major market for Tesla

China is a major market and production base for Tesla. In July, Tesla cars were even placed on a Chinese government purchase list. With this, Tesla became the only foreign-owned EV car brand on the purchase catalog published by the government of a Chinese province. The development went viral on Chinese social media, highlighting the "cozy relationship" China has with Elon Musk’s company.

Tesla has a Gigafactory in Shanghai where around 947,000 cars were manufactured in 2023. While most of these cars were used locally, Tesla also exported China-made EVs to Europe. However, the company reported a decline in net income last month as sales fell despite price cuts and low-interest financing. China’s BYD has been giving Tesla a run for its money over the past few quarters. This is concerning for Tesla, as last year the company derived nearly 25 per cent of its total revenue from China.