Business
Tesla Defies Market Downswing with 17% Rise in China’s EV Deliveries Amid Slipping Sales for Li Auto, Nio
Tesla's electric vehicle deliveries from its Chinese factory increased by 17%, even as sales declined for competitors Li Auto and Nio. This American automobile manufacturer managed to defy the downward trend in the first half of the year, largely due to increased government subsidies boosting sales.
The Shanghai Gigafactory 3, managed by American automaker, saw an increase in delivery of their Model 3 and Model Y cars to both local and international customers in August. The China Passenger Car Association (CPCA) reports that there was a 17% rise from July's figures and a 3% increase compared to the same time last year, with a total of 86,697 vehicles delivered.
Even with the recovery, the car plant's shipments in the initial eight months of 2024 were 6 per cent less than the 624,983 vehicles it shipped during the equivalent period the previous year.
"The financial assistance provided by China's government to incentivize the acquisition of electric vehicles as replacements has positively impacted Tesla and its domestic competitors," stated Tian Maowei, a sales executive at Yiyou Auto Service in Shanghai. "Given the growing preference for electric cars over gas-powered vehicles among younger drivers, Tesla's market performance in China is expected to remain consistent in the near future."
Towards the end of July, Beijing increased the subsidies provided to electric vehicle purchasers by two-fold. This was done merely three months following the introduction of incentives aimed to hasten the transformation of the national car industry.
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