Tesla Inc. reported a record-breaking year in China with sales exceeding 657,000 vehicles in 2024, marking an 8.8% increase compared to the previous year. Despite this strong performance in the world’s largest automotive market, Tesla’s global deliveries dropped for the first time, sliding 1.1% year-on-year to 1.79 million vehicles.
China accounted for 36.7% of Tesla’s global sales in 2024, underlining the region’s importance to the company’s growth. In December alone, Tesla delivered 83,000 cars in China, a 12.8% monthly increase, according to Tesla China.
John Zeng, head of market forecasts for China at GlobalData, highlighted China’s unique position as a growth leader in the global EV sector. “China accounted for 70% of global EV and hybrid sales in the first 11 months of 2024,” he stated, noting its outsized contribution to global sales growth.
However, Tesla faced intensifying competition from Chinese automakers like BYD, whose global EV sales surged 12.1% to 1.76 million units in 2024. BYD’s passenger vehicle sales jumped 41% to over 4.25 million units, solidifying its dominance in the Chinese market and expanding its footprint overseas.
Tesla has responded to the competitive EV market in China by extending incentives such as ¥10,000 ($1,370) discounts on Model Y loans and zero-interest financing for certain models, aiming to sustain momentum as the price war enters its third year.
Meanwhile, BYD encountered challenges abroad, missing its export target of 450,000 units and facing scrutiny in Brazil over labor conditions at its factory construction site.
As Tesla navigates a global landscape characterized by waning subsidies, rising competition, and evolving consumer preferences, its record-breaking performance in China underscores the critical role of the region in its strategic outlook.
