Despite a global dip in deliveries, American electric vehicle (EV) manufacturer Tesla achieved record sales in the Chinese mainland in 2024. The company reported an 8.8% increase in China sales, delivering over 657,000 vehicles—a figure that constitutes 36.7% of its global deliveries over the past year.
Industry experts attribute Tesla’s success in China to the country’s robust consumption power and supportive policies. “The carmaker’s record China sales while its worldwide deliveries fell is reflective of the global EV landscape, as China is the only major market seeing robust growth versus a slowdown or even slide in other markets,” said John Zheng, head of market forecast for China at London-based consultancy GlobalData, as quoted by Reuters.
China accounted for 70% of global sales of electric vehicles and hybrids in the first 11 months of 2024, according to Reuters. Over 90% of the global increase in EV and hybrid sales during the past year came from China, underscoring the nation’s significant role in the global automotive industry.
The surge in Tesla’s China sales highlights the vast consumption potential within the country. The Chinese government has implemented a series of measures to boost domestic consumption, including increasing fiscal input, removing market barriers, and exploring new consumption frontiers. These efforts have positioned consumption as a primary engine for economic growth.
In the first nine months of 2024, consumption contributed 49.9% to China’s economic growth, substantially surpassing investment, according to Xinhua. At the annual Central Economic Work Conference held last month, the government emphasized “boosting consumption” as a key task for 2025, focusing on increasing incomes and reducing burdens for low- and middle-income groups.
Tesla’s performance in China amid a decline in its global deliveries also reflects the openness of the Chinese market. While some Western countries have erected trade barriers, China has continued to open its doors wider to foreign investment. Last November, the country reduced the number of restricted items from 31 to 29, lifting all restrictions in the manufacturing sector.
China’s ongoing efforts to improve laws and regulations have laid a solid foundation for high-level opening-up. By fostering a conducive environment for foreign businesses, the country demonstrates its commitment to globalization and free trade.
Tesla’s record sales in China not only affirm the company’s strategic focus on the Chinese market but also exemplify the opportunities available to international businesses willing to engage with China’s dynamic economy.
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Tesla's record sales prove vitality and openness of China's economy
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