Business
Tesla Outperforms Chinese Rivals Li Auto and Nio with 17% Spike in EV Deliveries Amid Government Subsidy Boost
Tesla's Chinese factory has seen a 17% increase in electric vehicle deliveries, even as competitors like Li Auto and Nio witness a decline in sales. The US automaker has successfully defied the market downturn in the first half of the year, largely due to substantial government subsidies stimulating sales.
American automobile manufacturer's Shanghai-based Gigafactory 3 reported delivery of 86,697 units of Model 3 and Model Y vehicles to both local and international customers in August. This signifies a 17% increase from July and a 3% growth compared to the same month last year, as per data from the China Passenger Car Association (CPCA).
Even with the recovery, the factory's shipments in the initial eight months of 2024 were 6 percent less than the 624,983 vehicles it dispatched in the corresponding period the previous year.
"The financial incentives provided by the Chinese government to promote the purchase of electric vehicles for replacements have proven advantageous for Tesla and its domestic competitors," stated Tian Maowei, who holds a sales manager position at Shanghai's Yiyou Auto Service. "With an increasing number of young motorists showing a preference for electric vehicles over those powered by gasoline, Tesla's market performance in China is expected to stay consistent in the upcoming months."
Towards the end of July, Beijing significantly increased the subsidies for those purchasing electric vehicles. This move came only three months after they introduced benefits to speed up the transformation of the local car industry.
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