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Tesla’s May Deliveries in China Dip 15% Year-on-Year Amid Fierce Competition

Tesla delivered 61,662 vehicles in China during May, marking a 15% drop compared to the same month last year, according to preliminary data from the China Passenger Car Association (CPCA). Despite this yearly decline, deliveries rose by 5.5% compared to April, showing a slight month-on-month recovery.

The decline reflects ongoing challenges for Tesla in China, the world’s largest electric vehicle market. Strong price competition from local brands like BYD, which sold 376,930 vehicles in May—a 14% increase year-on-year—has intensified pressure on Tesla. The competition has sparked aggressive price cuts across the industry, involving more than 40 car brands.

To boost sales, Tesla recently introduced smart assisted driving feature transfers for new vehicles in China through June. Additionally, Model 3 and Model Y cars were included for the first time in a government-supported campaign promoting electric vehicles in rural areas.

Overall, China’s new energy vehicle wholesale sales surged 38% year-on-year in May, reaching 1.24 million units, showing strong demand in the sector despite Tesla’s sales slowdown.

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