Business
Tesla Outperforms Chinese Rivals with 17% Sales Increase Amid Larger Government Subsidy and Market Shift Toward EVs
Tesla's China factory has seen a 17% increase in electric vehicle deliveries, even as its competitors, Li Auto and Nio, face declining sales. The American automotive company has managed to defy the industry's downturn in the first half of the year, bolstered by significant governmental subsidies.
American automobile manufacturer's Shanghai-based Gigafactory 3 reported a delivery of 86,697 Model 3 and Model Y cars to local and international customers in August. This shows a 17% increase from July and a 3% rise compared to the same timeframe last year, as stated by the China Passenger Car Association (CPCA).
Even with the recovery, the plant's shipments in the first eight months of 2024 were 6 per cent less than the 624,983 vehicles it dispatched during the corresponding period the previous year.
"Tian Maowei, a sales supervisor at Yiyou Auto Service in Shanghai, expressed that the financial aid provided by the Chinese authorities to promote the buying of electric vehicles as substitutes has advantaged Tesla and its domestic competitors. He added that with a growing preference for electric cars over gas-powered ones among younger drivers, Tesla's revenue in China is likely to remain consistent in the near future."
Towards the end of July, Beijing increased the subsidies for electric vehicle purchasers by two-fold. This move came only three months after they introduced incentives aimed at speeding up the shift of the local car industry.
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