Tesla’s sales of China-made electric vehicles (EVs) dropped by 4.3% year-on-year in November, totaling 78,856 units, according to the latest data from the China Passenger Car Association (CPCA). Despite this, the company saw a 15.5% increase in deliveries of its China-made Model 3 and Model Y vehicles compared to the previous month, highlighting a month-to-month improvement in performance.
While Tesla continues to face challenges in the world’s largest EV market, Chinese rival BYD achieved a record-breaking performance, with sales of its Dynasty and Ocean lineups rising 67.2% year-on-year to 504,003 units in November. The company’s overseas shipments accounted for 6.1% of its total sales, further solidifying its global presence.
In response to intensifying competition, particularly from BYD’s aggressive pricing strategies, Tesla has introduced additional incentives for Chinese consumers. The company is offering a time-limited discount of 10,000 yuan ($1,375.89) on outstanding loans for its popular Model Y. Tesla has also extended its zero-interest financing offer, which covers certain Model 3 and Model Y vehicles, through the end of December, marking the fifth such extension since the scheme launched in July.
However, Tesla’s market share in China has seen a significant drop. As of October, the company’s share of the Chinese EV market shrank to just 6%, nearly half of its market share in September, reflecting the increasing pressure from local competitors.
With BYD continuing to innovate and expand its offerings, and Tesla ramping up its promotional efforts, the EV market in China is becoming more competitive than ever. The upcoming months could be pivotal for Tesla as it navigates the shifting dynamics in the world’s largest and most competitive EV market.
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