Tesla’s sales in China grow as EV industry rebounds
Tesla’s sales in China grew by double-digits in May as electric vehicle makers benefited from friendly government policies and a surge of interest in high-tech cars.
The Austin, Texas-based automaker sold 72,573 units in May, a 16.7% increase compared to a month earlier when it sold just 62,167 vehicles in the world’s largest auto market, according to preliminary data released by the China Passenger Car Association (CPCA) on Tuesday. Tesla in May maintained its spot as the second-largest EV seller in China’s market, behind rival BYD.
However, Tesla’s sales fell 6.6% compared to May 2023, extending its year-over-year decline to a second month.
The sales performance comes as the company slashes production of its best-selling — but aging — Model Y SUV. Production of the model sank 33% year-over-year to 33,610 vehicles in April, in response to slowed demand and difficulty competing with domestic rivals’ low prices, Reuters reports.
Tesla in May benefitted from Beijing’s new trade-in program, which gives a one-time subsidy of as much as 10,000 yuan ($1,380) to consumers who trade in their old models and buy a new car. China also hosted the Beijing Auto Show, which ran from late April to early May and stoked consumer interest in new technology. But unlike many of its rivals, Tesla didn’t use the Beijing Auto Show to attract more interest from consumers.
Several of Tesla’s domestic rivals — including some who took the stage at the auto show — also performed strongly in May.
Warren Buffett-backed BYD sold 330,488 units in May, up 38% year-over-year and almost 6% from April. Nio delivered 20,544 vehicles in May, marking a 233.8% increase year-over-year, while Li Auto’s sales increased almost 24% compared to last year to 35,020 units.
Geely Auto sold 58,673 units in China, while Changan Automobile delivered 55,800 vehicles last month, making them the third and fourth largest sellers, respectively. Xpeng sold 10,146 smart EVs in May, marking a 35% year-over-year increase.
