Due in large part to Shanghai’s updated license plate regulations, Tesla China could rewrite its outstanding sales performance for the Model 3 this December. A leak from the Secretary-General of the China Passenger Car Association (CPCA) Cui Dongshu that 6,846 Model 3 units were sold in Shanghai last month.
Shanghai’s November Model 3 purchases accounted for 31% of the total number of Tesla China-made cars sold in the country last month. The Tesla Model 3 sales increased, with a reported total of 21,604 Model 3 units by the CPCA, and reflected a 78% increase compared to October’s sales. The rise in Tesla Model 3 sales in Shanghai, which tripled between October and November, could be linked to updated license plate guidelines for the city.
As part of compliance with the announced of restrictions on non-local license plates and the new energy vehicles (NEVs), Shanghai drivers have taken interest in Tesla. In October, a store in China reportedly sold 80 vehicles in just one morning upon the announcement of the new policy.
The new policy states that cars with non-local license plates would not be allowed to drive through certain elevated roads in the city from 7 am to 8 pm on workdays starting from November 2. Since the policy was implemented just a month ago, it is forecasted that the increase in sales for Tesla China will continue until December.
Each year, like many other major cities in China, Shanghai restricts the number of license plates released to car owners. For car owners not able to get Shanghai license plates, non-local license plates are an acceptable second choice. NEVs are not subjected to the license plate limitations of Shanghai and have been a great option for car owners, even more so now that the non-local license plate laws of the city are in place.
Since the policy was implemented, the huge rise in NEV sales suggests that demand for renewable energy vehicles will cease to continue. Tesla has a significant edge in the NEV market as the game-changer of EVs. As @ray4tesla said, Tesla, partly due to its “cool factor,” has now become the brand of choice in China.