August sales data puts Tesla on an upward trajectory in the world’s biggest EV market with local giant BYD posting record sales of its EV and hybrid vehicles
In August, Tesla’s sales of China-produced electric vehicles increased by 3% compared to the previous year, as reported by the China Passenger Car Association (CPCA) on Monday. The deliveries of Tesla’s Model 3 and Model Y rose by 17% from July.
Chinese rival, BYD posted a record sales result up 35.3% year-on-year increase in passenger vehicle sales, reaching 370,854 units with its Dynasty and Ocean EV and plug-in hybrid series. Other domestic EV manufacturers like Leapmotor and Li Auto also reported higher sales.
Tesla’s rising sales in China, encompassing both domestic and export markets, are bolstered by extended incentives for local buyers and recent progress in gaining government support. Despite a reduction in its local sales team due to global layoffs, Tesla seems to be on an upward trajectory in the Chinese market for the third quarter.
China is far and away the biggest market for EVs, ahead of Europe and the U.S., with 2024 sales projected to be above eight million vehicles.
In July, Tesla saw a 78% year-on-year increase in deliveries to tier-three cities, while sales in second-tier cities such as Hangzhou and Nanjing grew by 47%, according to China Merchants Bank International (CMBI). To attract more cautious buyers in a challenging economy, Tesla has been offering a zero-interest financing plan for up to five years since April.
Shi Ji, an analyst with CMBI in Hong Kong, told Reuters, “We project Tesla’s retail sales volume to hit 65,000 units in August aided by strong growth in smaller cities. Should such momentum continue in September, Tesla may post the highest quarterly sales volume in China in 3Q24.”
Moreover, several local governments have recently approved Tesla vehicles for official use. In April, China’s top auto industry association confirmed that Tesla’s data collection practices in China were compliant, which has allowed Tesla cars to access some government facilities previously off-limits.
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