Asia Tech Wire (July 5) -- Several state-owned enterprises (SOEs) in Shanghai have purchased Tesla vehicles, local authorities said.

The Investment Promotion and Service Center of the Lingang Special Area of the China (Shanghai) Pilot Free Trade Zone said that multiple SOEs, including Shanghai Chengtou Xingang and Shanghai Lingang New Area Investment Holding Group, have taken the lead in purchasing a batch of Tesla Model Y vehicles as functional company cars.

In an article published on Friday, the center stated, "This is also an active response by the Lingang New Area to treat both domestic and foreign-funded enterprises equally in government procurement activities."

Chinese Vice Premier He Lifeng emphasized the need to support both domestic and foreign enterprises equally in government procurement during a symposium on foreign investment work in Beijing earlier this week.

Tesla's only electric car factory in China sits in the Lingang New Area, where the company is also constructing its first energy storage superfactory outside the U.S.

Shanghai authorities said last year that Tesla, as a leading company in new-energy vehicle market, has made positive contributions to Shanghai's efforts to build a world-class automotive industry center.

Tesla's Shanghai superfactory has now achieved a parts localization rate of more than 95%, helping 60 Chinese suppliers successfully enter its global supplier system.

Earlier, a notice showed that the Tesla Model Y rear-wheel-drive version appeared in the Jiangsu provincial government's new energy vehicle procurement catalog for 2024-2025, which is the first time for Tesla cars to enter a Chinese government procurement catalog.