Business
Tesla Outperforms Chinese Rivals with 17% Delivery Boost Amid Government Subsidy Hike
Tesla increases its electric vehicle deliveries by 17% from its Chinese factory, while competitors like Li Auto and Nio see a drop in sales. The American automobile manufacturer defies the declining trend in the first half of the year, backed by substantial governmental subsidies that stimulated sales.
The Shanghai-based Gigafactory 3, owned by American automobile manufacturer, shipped 86,697 units of Model 3 and Model Y vehicles to both local and international customers in August. This represents a 17% increase from July and a 3% rise compared to the same month last year, as per the 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 per cent less than the 624,983 vehicles it distributed in the equivalent period the previous year.
"Tesla and its domestic competitors have benefited from the cash incentives provided by the Chinese government to promote the purchase of electric vehicles as replacements," stated Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai. "Given the increasing preference for electric vehicles over gasoline-powered ones among younger drivers, Tesla's sales in China are expected to remain steady in the near future."
Towards the end of July, Beijing increased the subsidies for electric vehicle purchasers by two-fold. This action came only three months following the introduction of encouragements intended to speed up the shift of the local auto industry.
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