Business
Tesla Outperforms Rivals with 17% Increase in EV Deliveries from China Amid Larger Government Subsidy
Tesla increases electric vehicle deliveries by 17% from its Chinese factory while competitors Li Auto and Nio experience a sales decline. The US automobile manufacturer defies the overall downward trend in the first half of the year, thanks to a significant government subsidy that enhances sales.
Shanghai's Gigafactory 3, owned by the American automobile manufacturer, dispatched 86,697 Model 3 and Model Y cars to local and international purchasers in August. This represents a 17% increase from July, and a 3% rise compared to the same time last year, as reported by the China Passenger Car Association (CPCA).
Even with the recovery, the manufacturing plant's dispatches in the initial eight months of 2024 were 6 per cent less than the 624,983 vehicles it delivered in the equivalent period the previous year.
"Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai, mentioned that the financial incentives provided by the Chinese government to stimulate the buying of electric vehicles (EVs) as alternatives have proven advantageous for Tesla and its domestic competitors. He added that with a growing number of younger drivers favoring EVs over gas-powered cars, Tesla's revenue in China is expected to stay consistent in the foreseeable future."
Towards the end of July, Beijing significantly increased the subsidies provided to electric vehicle purchasers, a mere three months following the introduction of incentives aimed at speeding up the transformation of the local car industry.
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