BEIJING – Sales of electric vehicles in China first increased in thirteen months in July, driven by increased government monetary incentives and local Tesla production.
Sales of electric cars increased last month by 19.3% during the year to 98,000 units, the China Automobile Manufacturers Association reported Tuesday. Tesla’s sales in China have increased significantly, supported by production of the Model 3 at its newly opened Shanghai plant.
About a year ago, China cut subsidies for new electric vehicles, leading to a decline in sales. While incentives had to be eliminated in the first place, then the country had to increase subsidies as a component of an economic stimulus policy in reaction to the new coronavirus.
Some communities have provided subsidies that benefited from the acquisition of new motor vehicles.
China also has restrictions at ease on the emission of electric car plates and other new electric vehicles. The license plates are rationed to cope with urban congestion and pollution.
Chinese sales of all new cars increased by 16.4% in July to 2.11 million units, marking a fourth consecutive month of expansion and 3 consecutive months of double-digit earnings.
Commercial cars led the way, 59.4% to 447,000 units. Passenger car sales increased by 8.5% to 1.66 million units, the third consecutive month on the plus side.
Sales volumes at General Motors’ main Chinese joint venture exceeded last year’s figures in July. Toyota Motor, Honda Motor and two Japanese automakers also outweighed their effects from last year.
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