The surge came as the world’s second largest economy began easing Covid-related restrictions after months of lockdowns in major cities, and as it makes efforts to boost car sales to support growth.
The US electric car maker sold about 78,000 Shanghai-made vehicles last month, up 142% from May, according to preliminary estimates released by the China Passenger Car Association (CPCA) on Wednesday. The June sales numbers are up 135% from a year ago, the CPCA added.
Tesla’s sales of Chinese-made vehicles were strong at the start of this year, ranking the carmaker first among pure electric brands. It delivered 65,814 vehicles from its Shanghai factory in March, with the majority of those sold in the Chinese market. That number was up 85% from a year ago.
According to initial estimates by CPCA on Wednesday, passenger car sales jumped 22% in June from a year ago, reversing May’s 17% decline.
Tesla has also accelerated production at its Shanghai factory. In a statement last week, the company said the issues Tesla faced in the early months of the quarter are now mostly behind it.
“Despite ongoing supply chain challenges and factory shutdowns beyond our control, June 2022 was the highest vehicle production month in Tesla’s history,” it said.
Authorities in China are rushing to bolster growth as Covid lockdowns battered the economy and caused soaring unemployment.
The Ministry of Commerce announced Thursday that the government is studying extending tax exemptions for electric cars.
Beijing has exempted buyers of NEVs from paying the 10% purchase tax since September 2014. But that policy is scheduled to end at the end of this year.
— CNN’s Chris Isidore contributed to this report.