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Tesla’s China Output Surges 17% Amid Slipping Sales for Rival EV Makers Li Auto, Nio: The Effect of Government Subsidies
Tesla's China factory has seen a 17% increase in electric vehicle deliveries, even as competitors Li Auto and Nio experience a decline in sales. The US auto manufacturer has managed to defy the overall downward trend in the first half of the year, partly due to increased government subsidies that have helped boost sales.
The Shanghai-based Gigafactory 3, owned by American automobile manufacturer, dispatched 86,697 units of Model 3 and Model Y cars to both local and international customers in August, marking a 17% increase from July and a 3% rise compared to the same time last year, as reported by the China Passenger Car Association (CPCA).
Even with a recovery, the factory's shipments in the initial eight months of 2024 were 6 per cent less than the 624,983 vehicles it shipped during the same timeframe the previous year.
"The financial assistance provided by the Chinese government to incentivize the acquisition of electric vehicles (EVs) as substitutes has been advantageous for Tesla and its domestic competitors," stated Tian Maowei, a sales lead at Yiyou Auto Service in Shanghai. "With a growing number of young motorists showing a preference for electric cars over gasoline-powered ones, Tesla's sales in China are expected to remain steady in the near future."
Towards the end of July, Beijing increased the subsidies for electric vehicle purchasers by twofold, a mere three months following its introduction of incentives aimed at speeding up the transformation of the local car industry.
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