Tesla sold 74,402 China-made vehicles in February, according to recent data from the China Passenger Car Association (CPCA), 31.2% up year on year and 12.6% up month on month.
One of the main factors contributing to Tesla’s strong sales in China is the company’s price reduction strategy.
On January 6th, Tesla significantly reduced its prices in China, with an average price reduction of about 10%. Currently, the average selling price of Tesla in China is around $30,000 to $40,000. This price reduction strategy has helped Tesla make its vehicles more accessible to a broader range of consumers, further boosting its regional sales.
According to CPCA data, Tesla sold about 34,000 vehicles in China and ranked second in pure electric vehicles in China in February, with BYD leading the pack by selling approximately 75,000 vehicles. However, it’s worth noting that BYD sold 45,000 cars at more than $30,000 in February, including 16,000 pure electric vehicles, equivalent to half of Tesla’s sales in China. This highlights Tesla’s competition in the high-end market segment, where consumers have a wide range of options.
Despite the competition, Tesla has continued to expand its presence in China in recent years. The company has established a production facility in Shanghai and has been actively promoting its vehicles since 2020. Tesla’s Model Y, in particular, has been well-received in China. The Model Y delivered 315,000 vehicles in China in 2022, accounting for about 37% of the global delivery of the model.
Since 2010, the Chinese government has been actively promoting the adoption of electric vehicles as part of its efforts to reduce air pollution and promote sustainable transportation. The government has implemented various measures to incentivize consumers to purchase electric vehicles, including tax exemptions, subsidies, and a quota system for automakers. However, it’s worth noting that China has canceled EV subsidies since January 2023. This move could have an impact on the sales of EVs in China, including those of Tesla.
Despite removing EV subsidies, Tesla remains optimistic about its sales growth in China. The company plans to expand its presence there, including constructing new production facilities and developing new models tailored to the Chinese market.
Tesla’s sales in China are still growing, but the growth rate has slowed compared to the previous two years. For example, in February this year, EV sales in China increased by 81% year-on-year, while Tesla increased by 31%. This means that, in fact, in the Chinese EV market, Tesla’s share is declining while BYD’s share is rising. In addition, the proportion of BYD’s vehicles with a price of more than $30,000 in sales is also rising. The price war in the Chinese market this year is extremely fierce, and BYD and Tesla are deeply affected. Many EV companies are on the verge of bankruptcy in the price war.
Last Month: Tesla Shanghai sold 66,051 EVs in January, up 10%.
Relative Articles: BYD sold 193,655 vehicles in January, up 90% year on year.
Source: CPCA, iTHome, AutoHome