Tesla Shanghai Gigafactory Photo: Courtesy of Tesla

US electric carmaker Tesla produced 33,544 vehicles in China in May, more than triple the April number, an industry association said on Thursday, as its Shanghai plant was back in full swing amid a broader push to reboot coronavirus-affected auto supply chains.

Tesla's stellar performance in the past month encapsulates a swift auto sector rebound. The industry association also ratcheted up its forecast for full-year domestic vehicle sales, citing a boost from state policies intended to bolster car consumption.

Tesla's locally made vehicle production hit 33,544 in May, a surge of 212 percent from April, the China Passenger Car Association (CPCA) said.

The US EV giant only made 10,757 vehicles at its Shanghai Gigafactory in April, far below its average level as the Omicron resurgence roiled the megacity, a hub for manufacturing vehicles.

Furthermore, Tesla China's wholesale number stood at 32,165 in May, up steeply from merely 1,512 during April. Tesla's exports from its Shanghai plant also rebounded to 22,340 last month from zero in April.

The Shanghai municipal government hosted multiple meetings to help major firms including Tesla in coping with difficulties in work and production resumption. Additionally, the Lingang New Area, where Tesla's Shanghai Gigafactory is located, has created a work team with the US carmaker to prime its local operations for an efficient restart, Tesla said in a statement sent to the Global Times on Thursday.

Considering that Tesla's hundreds of suppliers are situated across the country and its domestic production necessitates overseas supplies, relevant authorities have pushed for the revitalization of key parts supplies, warehousing and logistics.

As a consequence, its Shanghai Gigafactory resumed production in April, under the auspices of the National Development and Reform Commission, the country's top economic planner, the industry watchdog and the commerce ministry, among other government bodies, according to the statement.

The Shanghai plant has adopted double shifts and a closed-loop management model, with cumulative vehicle production totaling over 40,000, Tesla said, and capacity utilization at the plant has hit 100 percent. 

The EV maker shipped 4,767 cars from its Shanghai plant to Europe on May 11, the first batch of exports since the factory's reopening. This was followed by the second batch of exports on May 15 with over 4,000 Tesla vehicles heading for Belgium. 

The shipment of 22,340 locally made Tesla cars throughout May to markets including Europe, Australia and Japan illustrates Made-in-China's superb resilience, Tesla said in the statement. 

Such numbers epitomize an industry-wide rebound. 

The country produced 1.67 million passenger vehicles in May, up 6.5 percent from the year earlier. On a monthly basis, the May reading soared 69.5 percent, according to CPCA figures, attributing the rebound to the effectiveness of measures to ensure supply chain supplies.

Passenger car sales fell 16.9 percent year-on-year to 1.35 million in May. The year-on-year sales decline eased from a 35 percent plunge for April.

The sales number was up 29.7 percent from the month before as well, the CPCA revealed on Thursday. 

The association estimated that passenger vehicle sales are set for double-digit rises in both manufacturing and sales in June.  

On top of that, the CPCA revised its full-year retail sales forecast to 21 million from the previous 19 million, buoyed by the central government's pro-car purchase measures as part of a larger policy package aimed at stabilizing the economy. 

That means domestic vehicle sales are on course for a yearly gain of 4 percent, a conspicuous uptick from an estimated fall of 6 percent for this year, according to the CPCA, accrediting the course reversal to the additional 2 million in sales.