Tesla’s sales in China reported their best month so far this year in August, rising a significant 37 percent month-on-month to over 63,000 cars. Despite the increase from July, Tesla’s sales in the country remained below the level recorded in August last year, when the company sold 64,694.
While this growth is notable, the company’s sales are significantly lower than local rivals. For instance, BYD, the world’s biggest EV maker, reported that its China sales rose 35 percent annually in August to a record monthly high of 370,854. Other local competitors including Leapmotor and Li Auto also reported higher sales.
Growth amid global downsizing
During the first half of the year, Tesla’s China sales declined 5 percent. EV car makers have been struggling lately with the price war in China where economic growth has also been slow and consumer confidence low.
Although Tesla has cut its local sales force as part of a global downsizing, a number of factors have raised sales recently. Since April, the company has been offering zero-interest loans of up to five years for buyers. In addition, several local governments have made the company’s cars eligible for official car purchases in recent weeks.
In addition, Tesla received key regulatory approval earlier this year, with the country’s top auto industry association saying that data collection by Tesla vehicles was compliant with regulations. This allowed Tesla cars to enter some government compounds that they used to be banned from.
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Demand grows across China
Recent data from the China Passenger Car Association (CPCA) also revealed that sales of Tesla’s China-made electric vehicles grew 3 percent in August from a year earlier. In addition, deliveries of its China-made Model 3 and Model Y vehicles rose 17 percent month-on-month.
In July, Tesla saw a 78 percent year-on-year increase in deliveries in tier-three cities. Meanwhile, the company’s sales in second-tier cities rose by 47 percent, recent data from the China Merchants Bank International (CMBI) revealed.
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