Tesla's China-made EV Sales Fall 11.5% Y/Y In March

Tesla, the American automaker, reported selling 78,828 electric vehicles made in China in March, a decline of 11.5 per cent compared to the same month last year, according to data released on Wednesday by the China Passenger Car Association (CPCA). Deliveries of Model 3 and Model Y cars made in China rose by 156.9 per cent compared to the prior month. Chinese competitor BYD, featuring its Ocean and Dynasty electric vehicle and plug-in hybrid series, experienced a 23.1 per cent increase in passenger vehicle sales year-over-year to 371,419 units last month.

Tesla started delivering an updated version of the popular Model Y in late February in China and last month in the U.S. and Europe, boosting demand as potential buyers anticipate the refresh. The U.S. electric vehicle specialist delivered 172,754 cars manufactured in China, counting domestic shipments and exports to regions such as Europe in the first quarter. This figure represents a 21.8 per cent decline compared to the previous year and is the lowest in over two years due to increasing competition, particularly in China. BYD is poised to overtake Tesla as the leading global EV seller for the first time this year, holding a 15.7 per cent market share and surpassing Tesla's 15.3 per cent, as reported by Counterpoint Research.

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The leading Chinese EV manufacturer aims for sales of 5.5 million units this year, with 14.5 per cent expected to be exported, has disrupted its domestic market by providing smart driving capabilities across most of its models at no additional cost and revealing advanced super-charging EV technology. Tesla's competitors in China have introduced at least six models over the last year to compete with the Model Y and Xiaomi (1810.HK), which is expected to release its YU7 crossover in 2025, which is considered its most formidable rival. To reclaim lost market share, Tesla plans to produce a less expensive version of the Model Y utilising current production facilities in Shanghai, with mass manufacturing set to start next year, Reuters reported last month.