The rise came as the world’s second-largest economy began easing Covid-related restrictions after months of shutdowns in major cities, and while it was making efforts to boost car sales to support growth.
The US electric car maker sold about 78,000 Shanghai-made cars last month, up 142% from May, according to preliminary estimates released by the China Passenger Car Association (CPCA) on Wednesday. The CPCA added that June sales numbers were up 135% from a year ago.
Tesla’s sales of Chinese-made cars were strong at the beginning of this year, ranking first in the auto industry among pure electric brands. 65,814 vehicles were delivered from its Shanghai plant in March, with the majority of those vehicles sold in the Chinese market. This number was 85% higher than last year.
According to the CPCA’s preliminary estimates on Wednesday, passenger car sales jumped 22% in June from a year ago, reversing May’s 17% decline.
Tesla has also accelerated production at its Shanghai plant. In a statement last week, the company said the problems Tesla experienced in the early months of the quarter are now mostly behind it.
“Despite ongoing supply chain challenges and plant closures outside our control, June 2022 was the highest month for vehicle production in Tesla’s history,” the company said.
Authorities in China are rushing to boost growth as Covid lockdowns hit the economy and drive up unemployment.
The Ministry of Commerce announced, on Thursday, that the government is considering extending tax exemptions for electric vehicles.
Beijing has exempted buyers of NEVs from paying 10% purchase tax since September 2014. But this policy is set to expire on end of this year.
CNN’s Chris Isidore contributed to this report.
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