China’s new energy vehicle (NEV) industry continues to grow as industry leaders BYD and Tesla prompt other local brands to catch up.
In addition, the government’s significant support in electric vehicle adoption through policy and program implementations boosts the local industry.
Tesla sales surged 9.4% in August
Tesla China’s aggressive pricing strategy seems effective in increasing its sales in August. It reported a year-on-year sales growth of 9.4% to 84,159 China-made units from just 76,965 in 2022, according to Benzinga.
Tesla’s August sales also represent a month-on-month sales increase of 30.92% from July’s record of 64,285 units.
It is worth noting that the Tesla Giga Shanghai produces both Model Y SUV and Model 3 sedan units.
Local competition
Despite the notable increase in Tesla’s August sales, its Chinese competitors also reported surging battery-electric vehicle sales growth during that period:
| Aug. Deliveries (in units) | Y-o-Y Change | M-o-M Change | |
| Tesla | 84,159 | 9.4% | 30.9% |
| Nio | 19,329 | 81% | (-5.5%) |
| XPeng | 13,690 | 43% | 24% |
| Li Auto | 34,914 | 663.8% | 2.3% |
| BYD | 145,627* | 76.1% | 8.1% |
As you can see in the table, Chinese NEV and power battery giant BYD led the local market by a significant margin with its 145,627 unit sales (up 76.1% YoY). BYD’s overall passenger NEV sales, including HEV vehicles, totaled 274,086 units in August, according to Barrons.
The Musk-led company followed with 84,159 units. Li Auto beat its co-Chinese brands NIO (19,329) and XPeng (13,690) with its August sales of 34,914 units.
Price cut impacts
Tesla’s significant price cuts in its China-made EVs enabled the company to boost sales in August. However, it also has its repercussions.
Tesla stock reportedly declined since its Q2 2023 results announcement on May 29. Investors became worried that the price cuts could potentially further hurt the company’s margins.
Moreover, interested buyers opted to delay their purchase as they anticipated more price reductions for Tesla EVs.
See Also:
- Tesla China sales grew 2.44% month-on-month in May 2023
- China to enjoy NEV retail sales growth of 9.2% MoM to 700K in August, CPCA forecasts
- Tesla China reports impressive insurance registrations, poised for strong June sales
- China: Passenger NEV retail sales declined 48% in January from December
- China: Sales of plug-in vehicles reached almost 6 million in 2022
Tesla stock declined 5.06% to $245.01 at Friday’s close. It is apparently a result of the negative response to Tesla’s price cuts for the Model S and X in its key markets, including the US, Europe, and China.
