Business
Tesla’s China Factory Outperforms with 17% Increase in EV Deliveries Amidst Slumping Sales for Rivals Li Auto, Nio
Tesla's Chinese factory has increased its electric vehicle deliveries by 17% even as competitors Li Auto and Nio see sales drop. The US automaker has managed to defy the overall downward trend in the first half of the year, thanks largely to a substantial government subsidy that has helped to stimulate sales.
According to the China Passenger Car Association (CPCA), the Shanghai Gigafactory 3, owned by the American automobile manufacturer, shipped 86,697 Model 3 and Model Y cars to customers both locally and internationally in August. This represents a 17% increase from July's figures, and a 3% rise from the same month last year.
Even with the recovery, the car factory's shipments in the initial eight months of 2024 were 6 per cent less than the 624,983 vehicles they delivered in the same timeframe the previous year.
"Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai, has indicated that Tesla and its regional competitors have profited from the Chinese government's financial incentive to promote the buying of electric vehicles as replacements. He pointed out that with an increasing number of younger drivers opting for electric cars over gas-powered ones, Tesla's sales in China are likely to remain consistent in the near future."
Towards the end of July, Beijing increased the subsidies for electric vehicle purchasers by twofold, merely three months following the introduction of incentives designed to speed up the transformation of the local car industry.
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