Business
Tesla Outperforms Rivals with 17% EV Delivery Increase from China Amid Subsidy Boosts, Despite Industry Downward Trend
Tesla has increased its electric vehicle deliveries by 17% from its Chinese manufacturing plant, even as competitors Li Auto and Nio see a decline in sales. The American automaker has managed to defy the industry downtrend in the first half of the year, thanks largely to significant government subsidies boosting sales.
American automotive company's Gigafactory 3 in Shanghai distributed 86,697 Model 3 and Model Y automobiles to local and international customers in August. This represents a 17% increase compared to July and a 3% rise from the same time last year, as per the statistics from the China Passenger Car Association (CPCA).
Even with the recovery, the manufacturing plant's shipments in the initial eight months of 2024 were 6 per cent less than the 624,983 vehicles it dispatched over the equivalent timeframe the previous year.
"Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai, stated that Tesla and its domestic competitors have greatly benefited from the financial incentives provided by the Chinese government to promote the purchase of electric vehicles as an alternative to traditional ones. He further suggested that Tesla's sales in China are likely to remain consistent in the foreseeable future, as there is a growing preference among younger drivers for electric vehicles over those powered by gasoline."
Towards the end of July, Beijing increased the subsidies for electric vehicle purchasers by two-fold, merely three months following the introduction of incentives to speed up the transformation of the local car industry.
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