Tesla’s EV sales in China slide as rivals gain market share

Sales of US vehicle maker Tesla’s China-made electric vehicles (EVs) skidded 17.8% in November from the same month a year earlier to 82,432 cars, China Passenger Car Association (CPCA) data showed on Monday.

That marked the biggest fall since December 2022 when Tesla’s sales of China-made EVs fell 21% on the year as it reduced output and cut prices to deal with rising inventories and weakening demand.

Deliveries of China-made Model 3 and Model Y cars were, however, 14.3% higher than in October.

Chinese rival BYD, with its Dynasty and Ocean series of EVs and petrol-electric hybrid models, saw passenger vehicle deliveries set another record at 301,378 vehicles in November, up 0.09% from October and 31% from a year earlier.

Tesla has been under pressure to fend off competition in the world’s largest vehicle market, though CEO Elon Musk’s charm offensive in China continues unabated.

Musk was among a small group of top US executives who met Chinese President Xi Jinping before a dinner event on the sidelines of the Apec summit in San Francisco in mid-November.

Xi expressed his support for Tesla’s development in China, the carmaker said in a Weibo post. Musk, in response, said he appreciated the rapid development of China’s new energy vehicle sector.

A Tesla-triggered price war in China since the start of the year has roped in more than 40 brands but its share of the country’s EV market dropped to 5.78% in October from 8.7% in September, Reuters’ calculations based on CPCA data show, as EV sales reached a monthly record.

Since late October Tesla has made five upward price adjustments in China where EV demand growth is slowing as consumers favour more affordable plug-in hybrids even with an ever-increasing range of battery-only vehicles.

Li Auto last month said mass production and delivery of its first full EV vehicles are scheduled for February.

Smartphone maker Xiaomi has also moved closer to EV production, with a unit of automaker BAIC Group applying for regulatory approval to build two Xiaomi-branded cars.

Reuters