Tesla’s Chinese electric vehicle sales fell 49% amid intensified competition in February
According to the China Bus Association, Tesla’s (TSLA, Finance)’s Chinese electric vehicle sales fell 49.2% year-on-year to 30,688 units in February, marking the lowest monthly sales since August 2022.
In the first two months of 2024, 93,926 units sold worldwide, and Tesla sold 28.7% compared to the same period last year. The changes that took place during the Lunar New Year holiday occurred in late January this year, rather than temporarily halting manufacturing due to upgrades, which helped explain the fall.
Chinese electric vehicle manufacturers pose increasingly more challenges to Tesla. Boasted by huge demand for its dynasty and ocean range, BYDDF (Financials) saw sales in February grow 90.4% year-on-year, hitting 614,679 units. For less than $10,000, the company launched low-cost smart electric cars that drove the price war in the Chinese auto industry. Other manufacturers, especially Geely (Gelyy, Financials) and LeapMotor, followed by affordable models.
Although Chinese competitors have introduced at least six new models in the previous year, Tesla’s Model Y is the best-selling car in China in 2023 and early 2024. Later this year, Xiaomi (Xiacy, Financials) may announce its YU7 crossover, which will be the main competitor to experts. Tesla also shipped Chinese-made cars to Europe, with sales dropping 45% in January.
In late February, Tesla released an upgrade of autonomous driving software in China to increase demand and increase city navigation tools. The company recently began offering revised Model Y.
Originally launched in April, it is a competitor to the Tesla model Y and Toyota (TM, Financials) RAV4, Nio (Nio, Financials) Onvo L60.
This article first appears on Gurufocus.
