Tesla’s China Factory Sees 17% Jump in EV Deliveries Amid Slump in Local Rivals Li Auto, Nio

Tesla has seen a 17% increase in its electric vehicle deliveries from its Chinese factory, while competitors Li Auto and Nio have experienced a decline in sales. The American auto manufacturer has managed to avoid the downward trend in the first half of the year, largely due to an increase in government subsidies boosting sales.

The China Passenger Car Association (CPCA) reported that Gigafactory 3, a facility run by American auto manufacturer in Shanghai, saw an increase in their deliveries of Model 3 and Model Y cars in August. They delivered a total of 86,697 units to customers both locally and internationally, marking a 17% rise compared to July and a 3% increase from August of the previous year.

Even with the recent recovery, the manufacturing plant's shipments in the initial eight months of 2024 were 6 per cent less than the 624,983 vehicles it shipped during the corresponding period the previous year.

"Tesla and its domestic competitors have gained advantages from the monetary incentives provided by the Chinese government to stimulate the buying of electric vehicles as replacements," stated Tian Maowei, who manages sales at Yiyou Auto Service in Shanghai. "Given the increasing preference of younger drivers for electric vehicles over gasoline-powered ones, Tesla's market performance in China is expected to remain 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 it introduced incentives to hasten the shift of the local car industry.