After passenger vehicle sales dropped in June and July, the Chinese auto market recovered in August with a return to growth. In the same month, Tesla almost doubled its market share in the country, amidst increased discounts and tax exemptions that helped bolster consumer appeal.
Passenger auto sales in China increased 2.2 percent year over year in August, according to data from the China Passenger Car Association (CPCA). Reuters analysis shows that Tesla almost doubled its market share in China in the same month, jumping from a 7.5-percent market share in July to a 13.2-percent share in August.
The CPCA data shows that Tesla sold 64,694 vehicles in China in August, while the automaker also delivered 65,316 Shanghai-built Model Y units during the same month. Gigafactory Shanghai sold roughly 84,159 vehicles in August, marking a nearly 31-percent increase from just 64,285 units sold the prior month.
In July, overall auto sales in China slid 2.6 percent from the same month last year, following a 2.9 percent dropoff year over year in June.
Overall auto sales in China increased 8.5 percent in August from July, reaching 13.38 million units in the first eight months of the year, representing a 1.8 percent increase from last year. Across all new-energy vehicles (NEVs), China saw a 34.5-percent sales jump in August, representing around 36.9 percent of all car sales.
CPCA Secretary General Cui Dongshu pointed to decreasing rates on current home mortgages as a potential factor in helping the Chinese auto market recover despite overall economic growth continuing to slow. Additionally, growth in markets outside of China helped bolster sales for domestic automakers, with August exports showing a 63-percent increase from July and a 31-percent increase year over year.
The news comes about a week after Tesla launched a refreshed Model 3 in China and beyond. The long-awaited vehicle, internally dubbed the Model 3 “Highland” during development, is available in two trims via Tesla China’s order configurator: an RWD option for RMB 259,900 ($35,809.26) and a dual-motor, AWD option for RMB 295,900 ($40,769.37).