Tesla continues its skid in mainland China as August electric car sales, market share fall
Tesla is gradually losing its appeal in China’s premium electric vehicle (EV) segment as its sales and market share fall.
The US carmaker handed 57,152 Shanghai-made Model 3 and Model Y vehicles over to customers on the mainland last month, down 9.9 per cent from a year earlier, according to the China Passenger Car Association (CPCA).
That meant Tesla’s losing streak has extended to six months in a row, despite its efforts to woo consumers away from rivals like Xpeng and Xiaomi with price cuts, interest-free loans and new model launches.
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Tesla’s sales on the mainland last month accounted for 4.4 per cent of the nation’s total EV deliveries, which climbed 23 per cent to 1.29 million units, the CPCA data showed.
The company commanded a 16 per cent share of the Chinese EV market in 2020 when its Shanghai Gigafactory began producing Model 3 vehicles for mainland customers. That slumped to 6.9 per cent last year amid mounting challenges from China’s home-grown firms, which developed dozens of premium cars with intelligent features similar to Tesla’s models.
“Tesla is unlikely to regain its glory in this market since Chinese rivals are growing fast and their diverse product portfolios will continue to siphon off buying interest from Model 3 and Model Y vehicles,” said David Zhang, secretary general of the International Intelligent Vehicle Engineering Association. “Those Chinese-developed smart EVs are cheaper and more stylish, which proves to be attractive to many young consumers.”
In May, a UBS survey showed that the number of EV buyers in China who picked Tesla as their top choice fell to 14 per cent last year from 18 per cent a year earlier and a 30 per cent peak in 2020.
Last month, Leapmotor, backed by Fiat owner Stellantis, broke its sales record for a fourth consecutive month by delivering 57,066 units, up 13.8 per cent from July. The company is known for its cheaper models fitted with preliminary self-driving systems and digital cockpits.
In late July, the Hangzhou-based company priced its new B01 sedan at 89,800 yuan (US$12,595), which amounted to just 40 per cent of the price for a Model 3 at 235,500 yuan.
Guangzhou-based Xpeng delivered 37,709 vehicles in August, up 2.7 per cent from July, setting a new record for a second consecutive month. The basic edition of its Mona M03, a midsize, fully electric sedan that hit the market in August 2024, sports a price tag of 119,800 yuan.
