Elon Musk and his electric car companyTesla have a large following in China－the world's largestvehicle market－much to the envy of rivals.

Tesla was the bestselling maker of suchvehicles in China last year, and in March this year was its best in the countryto date, with 35,478 cars sold, according to the China Passenger CarAssociation.

However, a number of potential customersare deciding against placing orders and some owners are refusing to drive theirTeslas to protest the way a customer who complained about an alleged brakefailure was treated at the Shanghai auto show.

Electriccarmaker criticized for its handling of unhappy customer

On April 19, the opening day of the show,which is held every two years, a woman got on top of a Tesla Model 3 car andshouted that the brakes did not work. She was quickly dragged away by securityguards, who attempted to hide her from visitors with open umbrellas.

The protester, who was detained by policefor disturbing public order, owns a Tesla Model 3 in Henan province, and herfather was involved in a traffic accident in February while driving the car.

The woman claimed that the crash was causedby a technical problem with the car, but Tesla insisted the accident was due toexcessive speed.

Soon after the protest, Grace Tao, a Teslavice-president, told reporters: "There is no possibility Tesla willcompromise ... I think she (the protester) is quite professional ... She hascontributed to most of the negative news about Tesla recently."

Faced with mounting pressure, the companysoftened its stance, issuing a series of late-night statements. On April 20, itput out an apology and said it was carrying out a "self-inspection".Next day, it said it was "working with regulators for investigation".

On April 22, Tesla disclosed data about thevehicle that crashed, generated before the accident. The data have not beenindependently verified.

Yang Zhongyang, a senior auto reporter atEconomic Daily, said the criticism leveled against Tesla centers mainly on howit responds to complaints, rather than referring to the quality of itsvehicles.

In a news analysis, Reuters said Tesladefies industry convention, as it is based on a corporate culture that rarelyadmits mistakes.

The company has long been accused bycustomers of responding in an irresponsible manner to complaints aboutincidents such as battery fires, unexpected acceleration and failure to providesoftware updates.

Only two months ago, Tesla promised to"strictly abide by Chinese laws and regulations and always respectconsumer rights "after the State Administration for Market Regulationurged it to heed consumer complaints.

Tu Le, an analyst at research company SinoAuto Insights, said, "There have been constant complaints on social mediaabout Tesla in China regarding quality and service issues, but they seem tohave been largely ignored by the local team until April 20."

Doubtsrise over Tesla as April sales tumble

Recently, Tesla saw its Chinese sales slumpin April following its controversial handling of customer complaints, raisingconcerns over the US electric carmaker's prospects in the world's largestvehicle market.

A total of 25,845 Model 3 sedans and ModelY crossovers were delivered in April, down around 27 percent from March,according to China Passenger Car Association data released on May 20.

This has caused speculation that Tesla issuffering from a backlash of its tough stance and response to the incident atShanghai Auto Show in April. The incident caused outrage against the brand thatwas deemed one of the best electric carmakers.

However, in a statement to China Daily,Tesla said the sales fall was primarily due to a two-week production halt toupdate its manufacturing equipment at its Shanghai plant.

The plant also produces vehicles forexport. Statistics from the CPCA showed that Tesla exported around 14,000 ofthe 25,845 vehicles sold in April.

Tesla did not give an estimate whether itssales would rebound to levels in March, which saw 35,000 vehicles delivered inthe country. But orders of its Chinese-made Model Y will not be delivered untilJuly.

Tesla sold more than 95,000 vehicles in thefirst four months in China. But sales in January and February combined werearound 33,000, which was lower than its sales in March.

A source close to Tesla told China Dailythat the repercussions of Tesla's incident at the Shanghai auto show would notbe felt in the month it happened.

In a separate development, Reuters reportedTesla is suspending its plan to expand its Shanghai plant.

Tesla refrained from bidding in March on aplot of land across the road from the plant. It no longer aims to boost Chineseproduction capacity significantly, at least for now, citing three people withknowledge of the matter.

"Tesla Shanghai factory is developingas planned. It is progressing but there is nothing to disclose at thisstage," said Tesla in a statement to China Daily on May 20.

Tesla's Shanghai factory is designed tomake up to 500,000 cars per year. It has the capacity to produce Model 3 andModel Y vehicles at a rate of 450,000 total units per year.

The firm faces intensifying competition inChina with traditional carmakers including Volkswagen and Chinese startups suchas Nio.

Analysts said Tesla should tread its pathmore carefully in the Chinese market and show respect to its customers, whichshould be the golden rule for any business.

Rivalsspeeding up efforts to introduce their electric cars

Chinese electric vehicle startups continueto be billed as Tesla rivals by international media, and the company has alsodone a great deal to boost the sector's appeal.

However, Chinese rivals are doing a muchbetter job in terms of customer relations. Take Nio for example. Some 50percent of its sales are due to recommendations from people already owningvehicles made by the company.

Technology companies, including Huawei, arejoining the competition and are expected to eclipse Tesla in terms ofdriver-assist functions.

The first vehicle to feature Huawei'soperating system, chips and autonomous driving solutions was shown at theShanghai auto show this month. Xu Zhijun, deputy president of Huawei, said thevehicles can operate safely for 1,000 kilometers, "much better thanTesla's".

As the protester was dragged away fromTesla's booth, international manufacturers are speeding up efforts to introducetheir electric cars to China.Volkswagen Group China CEO Stephan Woellenstein wasdelivering a speech in Chinese, presenting the latest electric vehicles made bythe company.

In the same pavilion, Volkswagen's premiumarm, Audi, reaffirmed its ambition to launch a "golden decade" withits local partners in China. An electric SUV concept named after the city ofShanghai was a highlight of its booth.

Also on April 19, General Motors' Cadillacdebuted its LYRIQ crossover in Shanghai, which features Super Cruise hands-freedriver assistance, including lane change on demand.

The company said the system can be used onnearly 300,000 km of highways across China, which is the brand's largest marketworldwide.

Felix Weller, a senior executive forCadillac's operations in China, said the model would be delivered early nextyear. At the same tine, Ford, the second-largest vehicle maker in the US behindGM, launched its electric Mustang Mach-E early this month. The company said itsmain rival is Tesla's Model Y.

Roy Lu, director of the Gasgoo AutoResearch Institute, said Tesla is pushing potential customers away. "Themarket is so competitive, and Tesla shows no respect for car owners whocomplain about its vehicle quality. Surely its sales and reputation will behurt," Lu said.

Tesla's troubles in China underscore aproblem that some of the company's senior executives have acknowledged,although the difficulties mainly relate to its North American business.

Tesla Chief Financial Officer Zach Kirkhorntold investors in January, "Service expansion is really important to thefuture strategy of the company."