Tesla China experienced a decline in vehicle sales during January and February, selling a total of 93,926 vehicles, including exports. This marked a 28.74 percent decrease compared to the same period last year. The decline in sales could be attributed to the Chinese New Year holiday and reported production line adjustments.
In February alone, Tesla China sold 30,688 vehicles, representing a 49.16 percent decrease from the previous year. The impact of the Chinese New Year holiday, which ran from January 28 to February 4 this year, typically leads to a decrease in production and deliveries for companies like Tesla.
Tesla operates a factory in Shanghai, where it produces the Model 3 sedan and Model Y crossover for both local customers and export markets. The specific figures for Tesla’s deliveries in China in February and exports from the Shanghai plant have not yet been disclosed.
In addition to the holiday impact, Tesla China’s sales decline in February could also be attributed to reported production line adjustments at its Shanghai factory. According to a Bloomberg report from January 15, Tesla planned to suspend part of its production lines in Shanghai that manufacture the revamped Model Y for approximately three weeks during the Chinese New Year to optimize the equipment.
The extended shutdown aimed to enhance the production lines and increase efficiency for the new Model Y SUV model. Specific details indicated that a portion of the Model Y production lines would be closed from January 22 to February 14, while another area producing the Model 3 electric sedan would be shut down from January 26 to February 3.
Tesla launched the revamped five-seat Model Y in China on January 10, with deliveries commencing on February 26. Initially offering two variants under the “Launch Series,” Tesla provided additional benefits to buyers until February 28. Subsequently, the regular version of the revised Model Y was introduced in China on March 1, maintaining the same prices as the Launch Series.
Despite the sales decline in the early months of the year, Tesla continues to navigate the Chinese market, adapting to holiday disruptions and implementing production line adjustments to enhance manufacturing efficiency and meet consumer demand.
