Business
Tesla Outpaces Chinese Rivals with 17% EV Delivery Boost Amid Increased Government Subsidies
Tesla has increased its electric vehicle deliveries from its Chinese factory by 17%, while competitors like Li Auto and Nio have seen a dip in sales. Despite an overall decline in the industry, the US automaker has managed to rise above in the initial half of the year, partly due to greater government subsidies supporting sales.
The Shanghai-based Gigafactory 3, owned by American auto manufacturer, shipped 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 recovery, the manufacturing 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.
"Tian Maowei, a sales manager at Shanghai's Yiyou Auto Service, stated that Tesla and its domestic competitors have profited from the Chinese authorities' financial incentives intended to promote the adoption of electric vehicles as replacements. He added that the increasing preference of younger drivers for electric cars over petrol-powered ones suggests that Tesla's market performance in China is likely to remain solid in the foreseeable future."
Towards the end of July, Beijing increased the subsidies given to electric vehicle purchasers twofold, a mere three months following the introduction of incentives designed to speed up the transformation of the local car industry.
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