May 25, 2024

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Tesla started to recover in China with a sharp rebound in sales

Tesla started to recover in China with a sharp rebound in sales

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.

BYD, Chinese EV Maker Bolstered by Warren Buffett, he was teetering on Tesla’s heels, with 69,544 all-electric vehicles sold last month, according to a statement from the company earlier this week.

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.

That was before the authorities Shanghai closed for two months To contain the worst outbreak of the Covid virus in the city. The Tesla plant in Shanghai was closed for several weeks in April. The company’s production remained limited even after the factory reopened, as it struggled to get parts from suppliers.
In April, Tesla sales decreased 98% from March to 1,512 vehicles. In May, deliveries recovered to 32,165, but remain well below levels reached earlier this year.
BYD, meanwhile, He survived the blanket lockdowns in the country. In April, BYD dominated the market, selling a record 106,000 New Energy Vehicles (NEVs), up more than 300% from the previous year. Among them, 54% were all-electric, while the rest were hybrids. In May, BYD’s NEV sales continued to rise, jumping to more than 114,000 units.
Analysts He attributed BYD’s flexibility in sales to an “integrated vertical supply chain”. The business model has made BYD less vulnerable to supply chain disruptions during shutdowns, while competitors have had to do so cut production Due to lack of chips and battery.
General auto market in China slow down In April and May, strict lockdowns affected vehicle production and hampered sales. The market is now starting to recover, as the country is gradually starting to open up.

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.

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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.

China shoppers are still on strike, youth unemployment is on the rise

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.