Tesla China EV Sales Hit a Roadblock: The biggest carmaker in the world, Tesla (TSLA.O), saw a drop in sales of its electric vehicles (EVs) made in China in September. Only 74,073 units were bought there. On Sunday, the China Passenger Car Association (CPCA) released data that showed this was 10.9% less than the previous year.
The sales of the Model 3 and Model Y, which are both made in China, dropped by a massive 12.0% from the previous month.
BYD (002594. SZ), a Chinese competitor known for its Dynasty and Ocean lines of electric cars and gasoline-electric hybrid models, saw a big rise in the number of passenger vehicles it delivered. The number of units sold went from 200,973 in September of last year to an amazing 286,903 this month, a rise of 42.8%.
Along with its Chinese competitors, Tesla thinks that buyer confidence will rise again, even though the market is currently struggling. This confidence is caused by planned price cuts and tax breaks from the government that are meant to encourage people to buy environmentally friendly cars. This is especially true now that there are signs that the economy will soon be stable.
Even so, Tesla, a leader in electric transportation, had a hard time meeting third-quarter market expectations for deliveries around the world. The delay, which became public on October 2, was due to planned changes at its factories that stopped production for a short time so that a better version of the mass-market Model 3 could be released.
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From July to August, the American company almost doubled its share of the Chinese EV market. This is interesting because the company is known for sending more EVs to China at the beginning of each quarter and then more to China at the end of the quarter.
Tesla changed the Model 3 in September and set a new starting price of 259,900 yuan in China, which is 12% more than the old model. This added an interesting new twist to the story. The fourth quarter is when deliveries of this improved model are expected to begin. This will help Tesla compete better.
Xpeng (9868. HK), a Chinese company that competes with Tesla, released a redesigned G9 SUV with a price starting at 263,900 yuan, which is 15% less than the previous model. In response to Tesla’s planned moves, this was done.
Even with all of these problems, the European Commission is keeping a close eye on Tesla, which is one of the biggest companies exporting electric cars made in China. The investigation is mostly about possible government support for battery-powered Chinese cars. Renault and other Chinese automakers are also being looked into.
Even with all of these problems, Tesla still delivered 247,217 cars made in China in the second quarter, showing that the company is still impacting the world.
Our Reader’s Queries
Why are Tesla sales down in China?
In December 2022, Tesla’s sales of China-made EVs fell by 21% on a yearly basis, marking the biggest drop since then. The U.S. automaker had to reduce output and cut prices to manage rising inventories and weakening demand.
Are EV sales soaring in China?
In the first 11 months of 2023, the production of PEVs increased by 21.1% year on year, totaling 5.89 million units. Additionally, output for plug-in hybrids rose by 81.4% to 2.53 million units. Sales of PEVs also saw a significant increase, reaching 5.86 million units, up by 23.6%. Similarly, plug-in hybrids experienced a surge in sales, increasing by 83.5% to 2.44 million units during the same period.
Are Tesla sales declining?
According to the report, Tesla’s market share has hit a record low of 50%, dropping from almost 65% in the same quarter of the previous year. This decline is a cause for concern for the company and its investors.
How many electric vehicles were sold in China last year?
China’s new energy vehicle market has been on a steady rise since 2011, with battery-electric vehicles leading the way. In 2022, a whopping 5.4 million battery-electric vehicles were sold in the country, marking an impressive 83.95 percent increase from the previous year. This surge in sales is a testament to the growing demand for eco-friendly transportation options in China.