Business
Tesla Outpaces Chinese Rivals Li Auto and Nio with 17% Surge in EV Deliveries Amid Increased Government Subsidies
Tesla's China-based factory has increased its electric vehicle deliveries by 17%, even as competitors Li Auto and Nio experience declining sales. The American automaker has managed to defy the overall downward trend in the first half of the year, largely due to increased government subsidies boosting sales.
The China Passenger Car Association (CPCA) reports that in August, Tesla's Gigafactory 3 in Shanghai distributed 86,697 Model 3 and Model Y cars to customers both locally and internationally. This figure represents a 17% increase from July and a 3% rise compared to the same month last year.
Even with the recovery, the plant's shipments in the initial eight months of 2024 were 6 per cent below the 624,983 vehicles it delivered in the same timeframe the previous year.
"Tian Maowei, a sales supervisor at Shanghai's Yiyou Auto Service, stated that the financial incentives provided by the Chinese authorities to promote the purchase of electric vehicles as replacements have advantaged Tesla and its domestic competitors. He predicts that as an increasing number of younger motorists opt for electric vehicles over petrol-fueled cars, Tesla's market performance in China is expected to stay consistent in the forthcoming months."
Towards the end of July, Beijing significantly increased the subsidies for electric vehicle purchasers, merely three months following the introduction of incentives to expedite the shift of the local car industry.
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