Business
Tesla Outperforms Chinese Rivals with 17% Sales Surge Amid Government Subsidy Boost
Tesla's electric vehicle production from its China-based factory has risen by 17%, even as competitors like Li Auto and Nio experience declining sales. The American auto manufacturer has defied the trend of falling sales in the first half of the year, bolstered by increased government subsidies.
The China Passenger Car Association (CPCA) reports that the Shanghai Gigafactory 3, owned by American automobile manufacturer, has shipped out 86,697 units of their Model 3 and Model Y cars in August to local and international customers. This shows a 17% increase from July's figures and is 3% higher than the numbers from August last year.
Even with the resurgence, the factory's shipments in the initial eight months of 2024 were 6 per cent less than the 624,983 vehicles it supplied during the equivalent period the previous year.
"Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai, highlighted how the financial incentives provided by the Chinese government to stimulate the purchase of electric vehicles for replacement have positively impacted Tesla and its domestic competitors. He predicted a steady flow of sales for Tesla in China in the future, as a growing number of younger drivers are favoring electric vehicles over traditional gasoline-fueled ones."
Towards the end of July, Beijing significantly increased subsidies for those purchasing electric vehicles, only a quarter after it launched benefits to speed up the transformation of the local car industry.
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