Tesla’s retail sales in China experienced a notable decline in January, attributed to seasonal factors and disruptions caused by the Chinese New Year holiday. According to data from the China Passenger Car Association (CPCA), Tesla sold a total of 63,238 vehicles in January, with 29,535 for export and 33,703 for the domestic market.
This marked a 15.49 percent decrease in domestic sales compared to the previous year and a significant 59.36 percent drop from December. The impact of the Chinese New Year holiday, which took place from January 28 to February 4, disrupted industrial production and consumer activities, leading to lower sales across the board for EV makers.
Tesla’s factory in Shanghai, which produces the Model 3 sedan and Model Y crossover, serves both local customers and as an export hub. The company follows a production pattern of focusing on exports in the first half of the quarter and catering to the local market in the second half.
In January, Tesla’s exports from the Shanghai plant decreased by 6.43 percent year-on-year but saw a substantial increase of 172.49 percent from December. Overall sales, including exports, were down 11.49 percent from the previous year and 32.56 percent from December.
The wholesale sales of Model Y in January totaled 32,233 units, representing a 23.02 percent decrease from the same time last year and a 48.00 percent drop from December. Meanwhile, the wholesale sales of Model 3, including exports, increased by 4.84 percent year-on-year but decreased by 2.44 percent from December.
In the broader context, China’s January retail sales of passenger new energy vehicles (NEVs) saw a 10.5 percent year-on-year increase but a 42.9 percent decline from December. Retail sales of battery electric vehicles (BEVs) in January were up by 13.3 percent year-on-year but dropped by 44.5 percent from December.
Tesla’s contribution to China’s passenger NEV retail sales was 4.53 percent and 7.84 percent to BEV retail sales in January, highlighting the company’s significant presence in the market. Despite the temporary setback in January, Tesla remains a key player in China’s EV industry and continues to adapt to market conditions to maintain its growth trajectory.
