SHANGHAI, July 4 Reuters Tesla39;s bestselling Model Y was included in a list of electric and plugin hybrid models that a local government in China can purchase as a service car, according to the official Chinese media outlet the Paper on Thursday.

It was the first time Tesla39;s cars have been made eligible for government purchases in China, the Paper added.

China39;s eastern Jiangsu provincial government published 56 batches of new energy vehicle procurements for use as service cars by party, government and public organisations in a government statement on June 6.

Apart from the Model Y made in Tesla39;s Shanghai factory and Volvo Cars39; XC40, the other 54 batches were all Chinesebranded EVs and hybrids. Volvo Cars is owned by Chinese automaker Zhejiang Geely Holding Group.

Neither the government nor the Chinese media specified the number of Model Y cars that the Jiangsu provincial government could buy.

Tesla39;s cars were banned from entering some government and military compounds in China.

The restrictions were removed after it won an endorsement from the country39;s top auto industry association that said in April the data collection by Tesla fleets in China was compliant.

As demand for Chinese cars abroad is overshadowed by the prospect of tariffs and domestic competition intensifies, Tesla39;s deliveries of Chinamade vehicles fell 9 in the first half compared to the same time in 2023.

Tesla CEO Elon Musk39;s trip to China in late April to meet Premier Li…