Business
Tesla Outpaces Chinese Rivals with 17% Increase in EV Deliveries Amid Subsidy Boosts and Shifting Consumer Preferences
Tesla's China-based production increases by 17% in electric vehicle deliveries, as competitors Li Auto and Nio experience a decline in sales. The American auto manufacturer manages to defy the overall market downturn in the first half of the year, aided significantly by increased government subsidies.
In August, Gigafactory 3 in Shanghai, owned by the American automotive company, shipped 86,697 Model 3 and Model Y cars to both local and international customers. This represents a 17% increase from July and a 3% rise from the same month the previous year, as reported by the China Passenger Car Association (CPCA).
Even with the recovery, the plant's shipments for the initial eight months of 2024 were 6 per cent less than the 624,983 vehicles delivered in the equivalent period the previous year.
"Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai, stated that the fiscal incentive provided by the Chinese government promoting the swap to electric vehicles (EVs) has positively impacted Tesla along with its domestic competitors. With the growing preference for electric vehicles over gasoline-powered ones among younger drivers, Tesla's sales in China are anticipated to maintain steadiness in the near future."
Towards the end of July, Beijing increased the subsidies for electric vehicle purchasers by two-fold. This move came only three months after they introduced benefits to speed up the shift of the local auto industry.
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