Tesla’s Model Y, the company’s flagship model, experienced a decline in sales in China last month as more locally produced units were allocated for exports. In April, retail sales of the Model Y in China reached 19,984 units, marking a 24.18 percent decrease from the same period last year and a significant drop from March’s figures. The Model Y accounted for 69.56 percent of Tesla’s total retail sales in China for the month of April.
Overall, in the January-April period, Model Y retail sales in China totaled 101,873 units, reflecting a 19.61 percent decrease compared to the previous year. This model constituted 62.37 percent of Tesla’s total retail sales in China during the same period.
Tesla’s Shanghai factory, which produces the Model 3 sedan and Model Y, is the company’s largest facility globally with an annual capacity of approximately 1 million units. Tesla follows a production strategy of manufacturing cars for export in the first half of the quarter and for the local market in the second half.
The Model Y witnessed a notable surge in exports last month, contributing to the decrease in sales within China. In April alone, the Model Y exported 13,976 units, marking a 149.30 percent increase year-on-year and a significant rise from March.
Furthermore, Tesla introduced a facelifted five-seat Model Y in China earlier this year, with deliveries commencing in late February. However, the model has faced increased competition from local rivals in the market.
To incentivize sales, Tesla announced a five-year zero-interest financing offer for customers purchasing any variant of the Model Y before June 30. Despite the decline in sales for the Model Y, Tesla’s Model 3 saw a rise in retail sales in China, with 8,747 vehicles sold in April.
In the January-April period, Model 3 retail sales in China reached 61,465 vehicles, representing a 65.59 percent increase year-on-year. The Model 3 also experienced a surge in exports, with 15,752 units exported in April alone.
Overall, Tesla’s operations in China remained robust, with the company selling a total of 58,459 vehicles in April, including domestic sales and exports. Giga Shanghai, the company’s manufacturing facility, exported 29,728 vehicles in April, showcasing a significant increase from the previous month.
Despite challenges in the market, Tesla continues to expand its presence in China and remains a key player in the electric vehicle industry. The company’s ability to adapt to changing market dynamics and maintain a strong foothold in the region underscores its commitment to innovation and growth.
