Tesla's China sales decline as the price drop stimulus fades - PingWest

Tesla's China sales decline as the price drop stimulus fades

Tesla's China sales decline as the price drop stimulus fades

16 hours ago

Sales of electric vehicles (EVs) by Tesla Inc in China increased last week but lagged below the rate recorded in the fourth quarter, suggesting the boost from lower prices in its largest foreign market is ebbing.

According to figures released on Tuesday by China Merchants Bank International (CMBI), Tesla nearly doubled its weekly retail sales to 10,703 automobiles from the previous week.

But, yearly average daily sales of 1,016 automobiles, compared to 1,317 in October and November, show that price reductions would not be adequate to boost sales in the first quarter compared to the fourth quarter.

Tesla wants to increase exports and enter new markets to absorb production from its Shanghai facility as competition heats up. Tesla has begun shipping vehicles to Thailand, where it also earlier this month installed its first Supercharger station.

According to CMBI data, BYD Co Ltd's market share increased from 27% to 37% in the meantime.

Tesla's performance is consistent with China's broader EV market, which has suffered as a result of the end of a government subsidy that lasted for more than ten years.

In China, EV sales grew significantly in 2022 and the two years prior, primarily due to subsidies and their reduction scheme.

According to figures from CEIC and the China Association of Automobile Manufacturers, 23.5 million new passenger automobiles were sold in China last year, a rise of 10% from 2021. (CAAM). Battery and plug-in hybrid electric cars (BEV and PHEV) made up over 26% of all units, which is about twice as many as in 2021.

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