Business
Tesla Outperforms Chinese Rivals with 17% Rise in EV Deliveries: The Impact of Government Subsidies and Changing Consumer Preferences
Tesla's China factory sees a 17% increase in EV deliveries, even as competitors Li Auto and Nio experience a decline in sales. The US automaker has managed to defy the general downward sales trend seen in the first half of the year, thanks to a substantial government subsidy that helped stimulate sales.
In August, Gigafactory 3 in Shanghai, owned by American auto manufacturer, delivered 86,697 of its Model 3 and Model Y cars to customers both locally and internationally. This represents a 17% increase from July's figures and a 3% rise compared to the same timeframe 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 per cent less than the 624,983 cars it supplied during the equivalent period the previous year.
"The financial support from the Chinese government to promote the acquisition of electric vehicles as replacements has been advantageous for Tesla and its domestic competitors," stated Tian Maowei, a sales executive at Yiyou Auto Service in Shanghai. "Given the growing preference for electric vehicles over gasoline-powered cars among younger drivers, Tesla's sales figures in China are expected to be consistent in the near future."
Towards the end of July, Beijing increased the subsidies provided to electric vehicle purchasers by two-fold. This move came just three months following the introduction of incentives aimed at speeding up the shift of the local car industry.
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