Business
Tesla Defies Market Slump with 17% Increase in EV Deliveries from China Amidst Rival Sales Decline: A Government Subsidy-Driven Success Story
Tesla has increased its electric vehicle deliveries by 17% from its Chinese factory, while competitors Li Auto and Nio have seen a drop in sales. The American automaker has managed to defy the declining trend in the first half of the year, thanks to a substantial government subsidy that has boosted sales.
The Shanghai-based Gigafactory 3, owned by American automobile manufacturer, reportedly shipped out 86,697 units of Model 3 and Model Y cars in August to both local and international customers. This marks a 17% increase compared to July's figures, and a 3% rise from the same time last year, as per the data from the China Passenger Car Association (CPCA).
Even with the recovery, the factory's shipments in the initial eight months of 2024 were 6 per cent less than the 624,983 vehicles it shipped during the equivalent time frame the previous year.
"Tesla and its domestic competitors have profited from the Chinese government's monetary incentives to promote the acquisition of electric vehicles as replacements," stated Tian Maowei, a sales executive at Shanghai's Yiyou Auto Service. "Given the growing preference for electric vehicles over gas-powered ones among younger drivers, Tesla's market performance in China is expected to stay consistent in the near future."
Towards the end of July, Beijing increased the subsidies for electric vehicle purchasers twofold, merely three months following the introduction of incentives designed to expedite the shift of the local car industry.
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