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Tesla Defies Downward Trend: Delivers 17% More EVs from Shanghai Factory Amid Slipping Sales of Rivals Li Auto, Nio
Tesla's electric vehicle production in its China factory increased by 17%, even as competitors like Li Auto and Nio experienced a drop in sales. The American car manufacturer managed to defy the overall declining trend in the first half of the year, thanks in part to the sizable government subsidies that drove sales upwards.
The Shanghai Gigafactory 3, owned by American automotive company, dispatched 86,697 units of Model 3 and Model Y cars to local and international customers in August. This represents a 17% increase from July's figures and a 3% rise compared to the same time last year, as reported by the China Passenger Car Association (CPCA).
Even with the bounce back, the plant's shipments in the initial eight months of 2024 were 6% less than the 624,983 vehicles it sent out during the equivalent period the previous year.
"The financial assistance provided by the Chinese government to stimulate the purchase of electric vehicles for replacement reasons has proven advantageous for Tesla and its domestic competitors," stated Tian Maowei, a sales executive at Yiyou Auto Service in Shanghai. "Given the growing inclination of young drivers towards electric cars over gasoline-fueled vehicles, Tesla's sales in China are expected to sustain their stability in the foreseeable future."
Towards the end of July, Beijing increased the subsidies provided to electric vehicle purchasers by two-fold. This move came only three months after it introduced benefits to speed up the changeover of the local car industry.
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