Tesla Faces Sales Decline In China Amidst Rising Competition
The decline has been attributed mainly to increased competition from domestic automakers such as BYD and Chery, which have aggressively cut prices. Consequently, Tesla’s market share in the new energy vehicle (NEV) sector has dropped to 3.78%, down from 6.87% in May 2024. In the battery electric vehicle (BEV) market, the company’s share decreased to 6.36%, a sharp decline from 11.15% year-on-year.
In addition to this, Tesla reported wholesale deliveries of 61,662 units in May, reflecting a 15.03% reduction compared to the previous year. Although the Shanghai factory ramped up production and exported 23,074 vehicles, it wasn’t enough to offset the broader sales decline. This marks the eighth consecutive month of year-on-year sales declines for the company in this crucial market.
Looking ahead, Tesla’s challenges seem to be mounting. Despite efforts to stimulate sales through discounts and incentives, including interest-free loans, these strategies have fallen short in countering the competitive pricing tactics employed by rivals. As the electric vehicle market in China enjoys a 35% increase in sales during the first quarter of 2025, Tesla’s ability to remain a key player is increasingly in jeopardy.
With new entrants like the Xiaomi YU7 poised to further intensify competition in the market, Tesla may need to reevaluate its strategies to maintain its foothold in an ever-evolving automotive landscape. The ongoing decline in sales underscores the hurdles the company faces amid rapid changes within the industry.
(Source: CNEVPOST)
