Tesla has achieved record-breaking sales in China, highlighting the vitality and openness of the country’s economy. Despite a 1.1% dip in global deliveries, Tesla’s sales in China soared by 8.8% in 2024, reaching over 657,000 vehicles.
China now accounts for 36.7% of Tesla’s global market, demonstrating the immense popularity of electric vehicles (EVs) among Chinese consumers. “The carmaker’s record China sales while its worldwide deliveries fell is reflective of the global EV landscape,” said John Zheng, head of market forecast for China at GlobalData. “China is the only major market seeing robust growth versus a slowdown or even slide in other markets.”
In the first 11 months of 2024, China was responsible for 70% of global EV and hybrid sales. Over 90% of the increase in global EV and hybrid sales came from China during this period.
Boosting Consumption Power
The Chinese government’s efforts to stimulate consumption have played a significant role in this growth. By increasing fiscal input, removing market barriers, and exploring new consumption frontiers, China has made consumption the main engine of its economic growth. In the first nine months of 2024, consumption contributed 49.9% to the country’s economic growth.
At the annual Central Economic Work Conference held last month, boosting consumption was highlighted as a key task for 2025. The government plans to implement special campaigns to increase incomes and alleviate burdens for low- and middle-income groups.
Openness Attracts Foreign Investment
Tesla’s success in China also underscores the country’s openness to foreign businesses. While some nations have increased trade barriers, China has continued to open its markets. In November, China reduced the number of restricted items from 31 to 29, lifting all restrictions in the manufacturing sector.
Foreign investments have followed suit. Tesla’s Gigafactory in Shanghai, built in 2019, accounts for more than half of the company’s global deliveries. “Our Shanghai factory is running at max capacity,” Tesla CEO Elon Musk shared on social media.
Other automotive giants like BMW and Mercedes-Benz have also expanded their investments in China, with both companies announcing significant funding for their production bases in the country.
According to the China Council for the Promotion of International Trade, about 90% of over 400 foreign firms surveyed in the third quarter of 2024 were satisfied with China’s business environment, with nearly 20% planning to boost investment in the country.
A Promising Future
Tesla’s record sales in China, amid a global downturn, highlight the strength and openness of the Chinese economy. As China continues to foster a favorable business environment and promote consumption, it remains a critical player in the global EV market, promising a bright future for both domestic and international businesses.
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Tesla's record sales prove vitality and openness of China's economy
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