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Tesla Surges Ahead: Delivers 17% More EVs from China Amid Sales Slump for Rivals Li Auto, Nio; Credits Government Subsidies for Boost
Tesla has increased its electric vehicle deliveries from its Chinese factory by 17%, even as its competitors Li Auto and Nio experience a decrease in sales. The American automaker has managed to defy the downward trend in the first half of the year, with substantial government subsidies helping to stimulate sales.
In August, Gigafactory 3 in Shanghai, owned by American auto manufacturer, shipped 86,697 of its Model 3 and Model Y cars to both local and international customers. This represents a 17% increase compared to July, and a 3% rise from August last year, as reported by the China Passenger Car Association (CPCA).
Even with the recovery, the plant's shipments in the first eight months of 2024 were 6 per cent lower than the 624,983 vehicles it dispatched during the corresponding period the previous year.
"The financial assistance provided by the Chinese government to stimulate the buying of electric vehicles as replacements has profited Tesla and its domestic competition," stated Tian Maowei, a sales director at Yiyou Auto Service in Shanghai. "Considering the growing preference for electric cars over gas-powered ones among young drivers, Tesla's sales in China are expected to maintain a steady pace in the upcoming months."
Towards the end of July, Beijing increased the subsidies for electric vehicle purchasers by two-fold, merely three months following the introduction of benefits to speed up the transformation of the local car industry.
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