The secondhand market in Hong Kong is in its infancy.
The country’s first new car maker, Teslas, has launched a $100,000 loan from the Hong Kong Development Fund (HKDF) to finance its development.
The loan is for development of the company’s secondhand vehicle, the Teslas 2.
The aim is to bring Teslas to the mainland and help to boost demand for its car.
In the process, the loan will help the company to get a foothold in the Hong Kowloon-based secondhand-car market.
“It’s a huge step forward for our industry.
It’s a big step forward in the growth of the secondhand sector,” said John Lam, CEO of Teslas.
“We are also seeing interest in electric cars in the market.
We’re expecting a lot of demand from customers who don’t have access to a car.
We are confident that this loan will lead to a significant growth in our secondhand sales.”
Teslas will manufacture the first production car, a 1,500-kilogram (2,200-pound) Teslas EV, at a factory in Shenzhen, Guangdong province, with the aim of building a factory of its own in the United States in 2018.
Teslas says it has a good working relationship with the Hong Diaspora, a group of Hong Kong residents that has established itself as an exporter of Chinese-made goods to the city.
The company will also invest $25 million in the second-hand car market in 2018, a deal worth HK$5.8 billion ($7.4 billion).
The loan from HKDF is aimed at boosting the company and the first-hand market.
Tesla will use the loan to finance the development of its secondhand Teslas car.
The first Teslas Model S, launched in 2013, had a base price of HK$40,000.
The second version, which is set to be introduced in 2021, will be priced at HK$50,000 and will be powered by an electric motor.
Teslas will also develop a third-generation model, the Model 3, which will be available in 2021.
Lam said the loans were designed to help support the development and commercialisation of the new vehicle.
Tesls main competitors, Nissan and Toyota, are also taking a long-term interest in the sector, with Nissan announcing a $50 million loan in 2017 to support its expansion in the Chinese market.
The loans will also help boost the sales of the vehicles.
“The loan will allow us to expand our business in the first place and also contribute to further growth in the car industry,” said Lam.
“To help us to be competitive in the future, we must also grow our sales.”