Business
Tesla Outperforms Chinese EV Rivals with 17% Sales Boost, Crediting Increased Government Subsidies and Youth Market Appeal
Tesla's Chinese factory sees a 17% increase in EV deliveries as competitors Li Auto and Nio experience a sales decline. The American automaker defies the first half-year slump, bolstered by a significant government subsidy that propels sales.
The American automobile manufacturer's Gigafactory 3, located in Shanghai, sold 86,697 Model 3 and Model Y cars to both local and international customers in August. This represents a 17% increase compared to July, and a 3% rise when compared to the same time last year, as reported by the China Passenger Car Association (CPCA).
Even with the recent recovery, the total production of the factory in the initial eight months of 2024 was 6 per cent less than the 624,983 vehicles it produced in the same timeframe the previous year.
The financial incentives provided by the Chinese government to promote the purchase of electric vehicles (EVs) for replacement has been advantageous for Tesla and its domestic competitors," stated Tian Maowei, a sales executive at Shanghai's Yiyou Auto Service. "Given the increasing preference for electric cars over gasoline-powered ones among younger drivers, Tesla's market performance in China is expected to stay consistent in the future."
Towards the end of July, Beijing increased the subsidies provided to electric vehicle purchasers by two-fold. This was only three months following the introduction of benefits aimed at speeding up the transformation of the local car industry.
Discover more from Automobilnews News - The first AI News Portal world wide
Subscribe to get the latest posts sent to your email.