Tesla Outperforms Chinese Rivals with 17% Sales Boost Amid Larger Government Subsidies

Tesla's electric vehicle deliveries from its China factory have surged by 17% even as its competitors, Li Auto and Nio, witness a dip in sales. The American automaker has managed to defy the industry's declining trend in the first half of the year, largely due to increased government subsidies aiding sales.

In August, the Gigafactory 3 in Shanghai, owned by US automobile manufacturer, dispatched 86,697 Model 3 and Model Y vehicles to customers both locally and internationally. This figure is an increase of 17% compared to July, and a 3% rise from the same 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 vehicles it dispatched during the equivalent period the previous year.

"The financial incentives provided by the Chinese government to promote the purchase of electric vehicles for replacement reasons has positively impacted Tesla and its domestic competitors," stated Tian Maowei, a sales executive at Yiyou Auto Service in Shanghai. "Given the growing preference for electric cars over gas-powered ones amongst younger drivers, Tesla's sales in China are expected to stay steady in the near future."

Towards the end of July, Beijing increased the subsidies given to electric vehicle purchasers by two-fold. This move came only three months after the introduction of incentives aimed at hastening the shift of the local car industry.