Business
Tesla Outperforms Chinese Rivals with 17% Sales Boost Amid Increased Government Subsidies
Tesla has increased its electric vehicle deliveries by 17% from its Chinese factory, even as sales decline for its competitors, Li Auto and Nio. The American automaker has managed to defy the downward trend in the first half of the year, largely due to increased government subsidies that have helped to drive sales.
In August, Tesla's Shanghai-based Gigafactory 3 produced and shipped 86,697 Model 3 and Model Y cars to customers both locally and internationally. This represents a 17% increase from July and a 3% increase from August of the previous year, as reported by the China Passenger Car Association (CPCA).
Even with a bounce back, the factory's shipments in the initial eight months of 2024 were 6 per cent less than the 624,983 vehicles it shipped during the equivalent period the previous year.
"Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai, mentioned that Tesla and other domestic competitors have gained advantage from the financial incentives provided by the Chinese government to stimulate the purchase of electric vehicles for the purpose of replacing older cars. He also predicted that Tesla's sales in China will stay steady in the upcoming months due to the growing preference for electric vehicles over gasoline-powered cars among younger drivers."
Towards the end of July, Beijing increased the subsidies for electric vehicle purchasers by two-fold, merely three months following its introduction of incentives to speed up the conversion of the local car industry.
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