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BEIJING, July 8 (TMTPOST)— Tesla China shattered monthly delivery record for the first time in the past six months, highlighting positive impact of the government’s new economic stimulus amid the Covid-19 related disruptions’ fading.

Source: Visual China

Tesla delivered a total of 78,906 China-made vehicles in June, refreshing the record in last December, when the U.S-based electric vehicle (EV) giant first shipped more than 70,000 units, according to China Passenger Car Association (CPCA). During the first half of the year, Tesla’s sales in China accounted for more than half of the company’s global deliveries, as data released a week ago showed it shipped 564,000 EVs worldwide. Tesla disclosed on July 3 that its worldwide delivery in the second quarter dropped 18% from the previous quarter to 255,000 units, suggesting the first quarterly decline in two years, which breaking the solid upward trend in delivery since the third quarter of 2020.

Tesla’s performance in June was consistent with development of the broader landscape in the sector. CPCA’s data on Friday showed the overall market of new energy vehicles (NEVs), including battery electric vehicles (BEVs), hybrid electric vehicles (HEVs) and other non-fossil fuel-powered vehicles, broke monthly record too. June witnessed wholesales of NEVs jumped 141.4% year-over-year to 571,000 units, with the monthly increase of 35.2%. There are 16 manufactures whose wholesale volumes hit 10,000 units, and BYD, an EV maker backed by Warren Buffett’s Berkshire Hathaway, ranked the first with the delivery of 133,762 vehicles, followed by Tesla China, the auto association estimated.

CPCA in late June has predicted the robust growth in auto industry due to recent economic stimulus including reduction of the purchase tax, as well as easing of Covid-19 restrictions.

The Ministry of Finance and the State Administration of Taxation announced in late May to cut the 10% purchase tax levy on certain cars by half, after an executive meeting of the State Council directed to launch a package of stimulus measures , including a phased reduction of RMB60 billion in the purchase tax for specified low-emission vehicles. The tax cut, effective from June 1 to December 31, 2022, can save RMB15,000 for any shopper who would buy a car under RMB300,000 ($45,000) and with 2.0-liter or smaller engines in the second half of the year.

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