Tesla Outperforms Chinese Rivals with 17% Increase in Deliveries Amid Larger Subsidy Boosts

Tesla's electric vehicle deliveries from its China factory have increased by 17%, while competitors Li Auto and Nio experienced a drop in sales. Despite a general decline in the industry, the American automobile manufacturer has managed to excel in the first half of the year, largely due to an increased governmental subsidy.

In August, Gigafactory 3 in Shanghai, owned by American automaker, distributed 86,697 Model 3 and Model Y vehicles to customers both locally and internationally. This marks a rise of 17% compared to July, and a 3% increase from the same time last year, as reported by the China Passenger Car Association (CPCA).

Even with the recovery, the number of vehicles dispatched from the factory in the initial eight months of 2024 was 6 per cent less than the 624,983 cars it had delivered in the corresponding period the previous year.

"The financial incentives provided by China's government to promote the buying of electric vehicles as alternatives has proven advantageous for Tesla and its domestic competitors," stated Tian Maowei, a sales executive at Yiyou Auto Service in Shanghai. "With a rising number of youthful motorists favoring electric vehicles over fuel-powered ones, Tesla's market performance in China is expected to remain consistent in the near future."

Towards the end of July, Beijing increased the subsidies given to electric vehicle purchasers by two-fold. This move came just three months after introducing incentives designed to speed up the transformation of the local car industry.