Business
Tesla Outpaces Chinese Rivals Li Auto, Nio with 17% Delivery Surge from Shanghai Gigafactory, Boosted by Government Subsidies
Tesla's production of electric vehicles (EVs) from its China factory has increased by 17%, even as its competitors Li Auto and Nio experience a decline in sales. Despite the overall decreasing trend in the first half of the year, the US automaker has managed to grow, largely due to increased government subsidies.
The China Passenger Car Association (CPCA) reports that Gigafactory 3, operated by the American auto manufacturer in Shanghai, distributed 86,697 units of Model 3 and Model Y vehicles to customers both locally and internationally in August. This marks a 17% increase compared to July, and a 3% rise from August of the previous year.
Even with the bounce back, the factory's shipments in the first eight months of 2024 were 6 per cent less than the 624,983 cars it shipped during the same timeframe the previous year.
"Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai, stated that the monetary incentives provided by the Chinese government to promote the purchase of electric vehicles as replacements have been advantageous for Tesla and its domestic competitors. He added that as a growing number of younger drivers show a preference for electric cars over those powered by gasoline, he anticipates Tesla's sales in China to maintain steady growth in the future."
Towards the end of July, Beijing increased the subsidies for electric vehicle purchasers twofold, merely three months following the introduction of incentives to speed up the transformation of the local auto industry.
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