Business
Tesla Surges Ahead in China: Sales Spike by 17% Despite Downward Trend for Rival EV Manufacturers
Tesla's China-based factory sees a 17% increase in electric vehicle deliveries, even as competitors Li Auto and Nio experience a decline in sales. In the first half of the year, the American automaker managed to defy the downward trend, benefiting from substantial government subsidies to boost sales.
The Shanghai-based Gigafactory 3, owned by the American auto manufacturer, dispatched 86,697 units of Model 3 and Model Y vehicles to local and international customers in August. This represented a 17% increase compared to July's figures and a 3% rise from the same month last year, as reported by the China Passenger Car Association (CPCA).
Even with the recovery, the plant's shipments in the initial eight months of 2024 were 6 per cent less than the 624,983 vehicles it shipped during the equivalent period the previous year.
"The financial support from China's government to promote the buying of electric vehicles as replacements has been advantageous for Tesla and its domestic competitors," Tian Maowei, a sales supervisor at Yiyou Auto Service in Shanghai, stated. "With a growing number of younger motorists favoring electric over gasoline-powered cars, Tesla's market performance in China is expected to stay consistent in the near future."
Towards the end of July, Beijing increased the subsidies for electric vehicle purchasers by two-fold. This move came only three months after they introduced incentives to hasten the transformation of the local car manufacturing sector.
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