Business
Tesla Surges Ahead: 17% Increase in China EV Deliveries Despite Rivals’ Sales Slump Amidst Government Subsidies
Tesla's electric vehicle output from its China factory has increased by 17%, even as its competitors, Li Auto and Nio, experience a decline in sales. The American automaker defied the market's downward trajectory in the first half of the year, largely driven by an increase in government subsidies.
The Shanghai-based Gigafactory 3, operated by American auto manufacturer, dispatched 86,697 Model 3 and Model Y cars to customers both in China and abroad in August. The China Passenger Car Association (CPCA) reported this as a 17% increase compared to July's figures, and a 3% rise from the same timeframe last year.
Even with the recovery, the car plant's shipments 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.
"The monetary incentive provided by the Chinese government to stimulate the acquisition of electric vehicles as a replacement for traditional ones has proven advantageous for Tesla and its domestic competitors," stated Tian Maowei, a sales executive at Yiyou Auto Service in Shanghai. "Given the increasing preference for electric cars over gasoline-powered ones among younger motorists, Tesla's market performance in China is expected to stay consistent in the near future."
Towards the end of July, Beijing increased the subsidies provided to electric vehicle purchasers by two-fold. This move came just a quarter of a year following the introduction of incentives aimed at speeding up the transformation of the homegrown car industry
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