Tesla Outperforms Rivals with 17% Increase in EV Deliveries from China Amid Market Slump and Boosted Government Subsidies

Tesla's China factory increases EV deliveries by 17% as sales decline for competitors Li Auto and Nio. The American automaker has managed to resist the prevalent downward trend in the first half of the year, largely due to an increase in government subsidies.

The Shanghai-based Gigafactory 3, owned by American automaker, produced and dispatched 86,697 units of Model 3 and Model Y vehicles to customers both locally and internationally in August. This production rate is a 17% increase from July and a 3% rise compared to the same timeframe last year, as per data 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 cars it shipped during the equivalent time frame the previous year.

"Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai, stated that Tesla and its Chinese counterparts have benefitted from the government's financial incentives to promote the buying of electric vehicles as replacements. As the younger demographic increasingly favors electric over gas-powered cars, Tesla's market stability in China is predicted to persist in the forthcoming months."

Towards the end of July, Beijing increased the subsidies for electric vehicle purchasers by two-fold, merely three months after they introduced benefits to fast-track the shift in the local car industry.