Business
Tesla’s China Factory Outperforms with 17% Rise in EV Deliveries Amid Slumping Sales for Li Auto, Nio: Government Subsidies Fuel Growth
Tesla has increased its electric vehicle deliveries from its China factory by 17%, even as its competitors, Li Auto and Nio, see a decline in sales. Despite a general downward trend in the first half of the year, the American automotive company has managed to thrive, in part due to increased government subsidies.
The Shanghai-based Gigafactory 3 of the American automobile manufacturer shipped out 86,697 Model 3 and Model Y units to both national and international customers in August. This shows a 17% increase from July and a 3% rise compared to the same period 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 it dispatched during the equivalent period the previous year.
"Tesla and its domestic competitors have received a boost from the Chinese government's financial incentives promoting the purchase of electric vehicles as replacements," stated Tian Maowei, a sales executive from Shanghai's Yiyou Auto Service. "With a growing number of young motorists favoring electric over gasoline-powered cars, Tesla's market performance in China is expected to stay steady in the foreseeable future."
Towards the end of July, Beijing significantly increased the financial assistance provided to electric vehicle purchasers, a mere three months following the introduction of incentives aimed at speeding up the transformation of the local auto industry.
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