Business
Tesla Outperforms Chinese Rivals with 17% Boost in EV Deliveries Amid Larger Subsidy Incentives
Tesla's production of electric vehicles (EVs) from its Chinese factory has increased by 17%, even as competitors like Li Auto and Nio experience a decline in sales. Despite the general downward trend in the first half of the year, the American automaker has thrived, thanks in part to an increase in government subsidies.
The Shanghai-based Gigafactory 3, owned by American automobile manufacturer, dispatched 86,697 units of Model 3 and Model Y cars to local and international customers in August. This figure represents a 17% increase compared to July, and a 3% rise from this time last year, as reported by the China Passenger Car Association (CPCA).
Even with the recovery, the factory's shipments in the initial eight months of 2024 were 6 per cent less than the 624,983 cars it shipped during the equivalent period the previous year.
"Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai, highlighted that Tesla and its domestic competitors have profited from the financial incentives provided by the Chinese government to stimulate the acquisition of electric vehicles as a replacement for older models. He further added that as the younger generation shows a growing preference for electric over gasoline-powered cars, Tesla's market performance in China is expected to maintain its stability in the foreseeable future."
Towards the end of July, Beijing increased the subsidies for electric vehicle purchasers by two-fold. This move came only three months after initiating incentives to speed up the shift of the local car industry towards electric vehicles.
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