Tesla Outperforms Rivals with 17% Increased Deliveries from China Amid Subsidy Boost, Despite Industry’s Downward Trend

Tesla's China-based production has seen a 17% increase in electric vehicle deliveries, even as competitors Li Auto and Nio experience a decline in sales. Despite the general downturn in the first half of the year, the American automotive company has managed to thrive, largely due to significant support from government subsidies.

The Shanghai-based Gigafactory 3, owned by American automaker, shipped 86,697 units of Model 3 and Model Y cars to both local and international customers in August. This represents a 17% increase from July's figures and a 3% rise compared to the same month the previous year, as reported by the China Passenger Car Association (CPCA).

Even with the recovery, the factory's shipments in the initial eight months of 2024 were 6% less than the 624,983 vehicles it delivered in the equivalent period the previous year.

"Tesla and its domestic competitors have gained advantage from the monetary incentives provided by the Chinese government to stimulate the acquisition of electric vehicles as replacements," stated Tian Maowei, a sales executive at Yiyou Auto Service in Shanghai. "With an increasing number of younger motorists leaning towards electric cars over gasoline-powered ones, Tesla's sales in China are expected to maintain consistency in the near future."

Towards the end of July, Beijing increased the subsidies for electric vehicle purchasers by two-fold, merely three months post the introduction of incentives to hasten the shift of the local car industry.