Boosted by the trade-in subsidy, Tesla China's August shipments increased year-on-year

With the strengthening of the Chinese government's subsidy policy for new energy vehicles, Tesla's Shanghai factory continued to maintain growth in shipments in August.

On Monday, September 2nd, according to data from the China Passenger Car Association, preliminary monthly data estimates that Tesla delivered approximately 86,697 Model 3 sedans and Model Y sport utility vehicles (SUVs) in August, an increase of about 3% year-on-year, achieving growth for the second consecutive month.

This growth trend is attributed to the Chinese government doubling the subsidy for eligible models to 2,000 yuan (approximately $2,800) at the end of July. The increase in subsidies encouraged drivers to replace old cars with new electric vehicles, especially benefiting entry-level battery electric vehicles and plug-in hybrid vehicles.

Due to the stimulus of subsidy policies, the plug-in vehicle market in China has been significantly boosted under the drive of government subsidy policies. Data from the China Passenger Car Association shows that in August, the wholesale sales volume of new energy passenger vehicles nationwide reached 1.05 million units, an increase of 32% year-on-year and 11% month-on-month. According to the association's estimate, after pure electric vehicle sales surpassed traditional gasoline vehicles for the first time in July, they may surpass the latter again in August.

Analysts believe that this indicates that after experiencing a slowdown in sales in the first half of the year, Tesla's Shanghai factory has recently seen a turnaround in sales momentum. With the drive of government subsidy policies, it is expected that Tesla's shipments in China will continue to grow in the coming months