Tesla’s China-made electric vehicle sales rise slightly in June, but fall on a quarterly basis as competition from lower-cost local models grows.
Sales of Model 3 and Model Y vehicles from its Shanghai factory, including domestic and export markets, increase 16.1% from May to 71,599 units, according to China Passenger Car Association data.
BYD, Tesla’s main Chinese rival, reports global car sales of 377,628 units in June, up 11% from a year earlier. Tesla previously recorded a fast ramp-up for the refreshed Model Y, reaching full production in Shanghai in just six weeks.
However, Tesla’s sales in China and Europe face downward pressure due to competition and political backlash against CEO Elon Musk. In the April-June quarter, sales of Tesla’s China-made EVs fall 6.8% year-on-year, marking a third straight quarterly decline.
These EVs make up 51.3% of Tesla’s global deliveries in the first quarter. Tesla is expected to report another drop in global quarterly deliveries later on Wednesday.
For the full year, Tesla’s global EV sales are projected to decline by 10%, accounting for 13% of the market. BYD’s sales are expected to grow by 45% to reach 20% of global EV market share, according to Counterpoint Research.
Xiaomi’s new YU7 SUV, priced below Tesla’s Model Y, receives strong initial demand. Its SU7 sedan has outsold the Model 3 monthly since December.
Tesla raises the price of the long-range Model 3 in China by 3.6% and increases its range by 40 kilometers to 753 kilometers. The company has not yet reduced prices in response to Xiaomi’s new models, despite analyst speculation.
