The latest data from the China Passenger Car Association (CPCA) shows that Tesla’s retail sales in the Chinese market have experienced a fifth consecutive year-on-year decline in the first seven months of this year. In July alone, the US electric vehicle (EV) maker sold 40,617 vehicles in China, marking a 12.14 percent decrease from the same month last year and a significant 33.94 percent drop from June.
This decline comes after Tesla had seen growth in June, raising concerns about the company’s performance in the world’s largest EV market. The company’s factory in Shanghai, which produces the popular Model 3 sedan and Model Y crossover, serves both local customers and export markets.
In July, the factory exported 27,269 vehicles, a 2.23 percent decrease year-on-year but a substantial 169.59 percent increase from June. Tesla’s production strategy involves focusing on exports in the first half of the quarter and catering to the local market in the second half.
Including exports, Tesla’s wholesale sales in China totaled 67,886 vehicles in July, down 8.41 percent from the same period last year and 5.19 percent from June. These figures highlight the challenges the company is facing in maintaining its market share in China’s competitive EV market.
Overall, China’s retail sales of new energy vehicles (NEVs) in July reached 987,000 units, reflecting a 12.0 percent year-on-year increase but an 11.2 percent decrease from June. Battery electric vehicle (BEV) sales in July were 607,000 units, up 24.5 percent year-on-year but down 8.1 percent from June.
Tesla’s market share in China’s NEV market in July stood at 4.12 percent, down from 5.53 percent in June. Similarly, its market share in China’s BEV market dropped to 6.69 percent from 9.30 percent in June, indicating increased competition from domestic and international EV manufacturers.
The latest sales figures raise concerns about Tesla’s performance in the Chinese market and highlight the need for the company to address challenges and maintain its competitive edge in the rapidly evolving EV industry. As Tesla continues to navigate market dynamics and consumer preferences, it remains to be seen how the company will adapt its strategies to regain momentum and drive growth in China.
