Tesla’s Model Y SUV faced a decline in retail sales in China in May, with the primary reason being a significant increase in exports. According to data from the China Passenger Car Association (CPCA), Tesla’s Model Y retail sales in China totaled 24,770 units last month, a 38.05 percent decrease from the same period last year. Despite this decline, there was a 23.95 percent increase from the previous month, with the SUV accounting for 64.19 percent of Tesla’s total retail sales of 38,588 units in China in May.
From January to May, the Model Y’s retail sales in China reached 126,643 units, a year-on-year decrease of 24.03 percent. This accounted for 62.72 percent of Tesla’s total retail sales of 201,926 units during the same period. The decrease in retail sales can also be attributed to the significant increase in exports, with the Model Y exporting 14,757 units in May, a year-on-year increase of 174.60 percent.
On the other hand, the Model 3 saw sales of 13,818 units in China in May, a 9.27 percent decrease from the same period last year. However, there was a 57.97 percent increase from the previous month, with retail sales reaching 75,283 units from January to May, up 43.81 percent year-on-year.
In May, Model 3 exports totaled 8,317 units, down 30.60 percent year-on-year. From January to May, the Model 3 exported 54,811 units, a year-on-year decrease of 39.26 percent. Overall, Tesla China sold 61,662 vehicles in May, including those sold in China and exported to overseas markets, according to data released by the CPCA.
Despite the decline in retail sales, Tesla continues to offer incentives to Chinese customers. In June, customers who purchase Tesla cars through the referral program can enjoy a discount of RMB 8,000 ($1,110) on optional body paint. This move comes as Tesla faces pressure in the Chinese market due to the decline in retail sales and increased competition.
