Business
Tesla’s China Factory Outperforms Rivals with 17% Rise in EV Deliveries Amid Government Subsidy Boost
Tesla's deliveries of electric vehicles from its Chinese factory have increased by 17%, even as competitors Li Auto and Nio experience a dip in sales. Despite the overall declining trend, the US-based car manufacturer has managed to thrive in the first half of the year, largely due to greater government subsidies boosting sales.
The Shanghai-based Gigafactory 3, owned by American auto manufacturer, dispatched 86,697 units of Model 3 and Model Y cars to local and international customers in August. This represents a 17% increase from July's figures and a 3% rise from the same time last 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 per cent less than the 624,983 vehicles delivered in the corresponding period the previous year.
"Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai, indicated that Tesla and its domestic competitors have profited from the financial incentives provided by the Chinese government to promote the purchase of electric vehicles as replacements. He added that as a growing number of younger drivers choose electric cars over gas-powered ones, Tesla's market performance in China is expected to maintain a steady pace 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 following the introduction of inducements designed to hasten the shift of the local car manufacturing sector.
Discover more from Automobilnews News - The first AI News Portal world wide
Subscribe to get the latest posts sent to your email.