Electric vehicle giant Tesla expanded its market share by almost two times in China’s automotive industry in August. According to Reuters‘ analysis, the Musk-led company’s EV share grew to 13.2% month-on-month from just 7.5% in July.
Tesla’s August performance is indeed remarkable, considering the industry’s declining sales in the previous months of the year.
China vehicle sales – August
China’s passenger vehicle sales surged 2.2% YoY to 1.94 million units in August, the China Passenger Car Association (CPCA) revealed. It marks the country’s first-ever YoY growth since May.
Meanwhile, the overall vehicle sales in July declined 2.6% YoY and down 2.9% YoY in June. Finally, it recovered in August with an 8.5% MoM increase.
This notable increase enabled the industry to reach a total of 13.38 million unit sales from January to August, up 1.8% YoY.
As for the new-energy vehicles (NEVs), sales also surged 34.5% in August, with a market share of 36.9%. Its sales also increased 11.8% in the same month from July.
Tesla’s August deliveries
Tesla’s electric vehicle sales in China reached 64,694 units in August alone, according to the CPCA. Moreover, its Shanghai-made Model Y deliveries were 65,316 units.
Teslarati further indicated that Giga Shanghai’s sales were approximately 84,159 EVs in August. It demonstrates an almost 31% MoM growth from just 64,285 in July.
In another significant milestone, Tesla Giga Shanghai produced its two millionth electric vehicle on September 6.
Factors reviving the local auto industry
China’s declining home mortgage rates are apparently one of the key factors reviving the local automotive industry amid the wider economic slowdown, CPCA Secretary General Cui Dongshu implies.
Moreover, foreign markets’ growth in the previous months also boosted the export figures of Chinese automakers. According to the report, China’s August exports grew 31% YoY in August after a 63% surge in July.
Chinese automakers continue to expand worldwide as they aim to compete in the rapidly growing market. Industry leader BYD released its new all-electric Seal sedan last Monday at the IAA Mobility in Europe.
XPeng also announced plans to penetrate the European market during the Munich auto show.
See Also:
- Tesla China reports impressive insurance registrations, poised for strong June sales
- Tesla China to attend the 2023 Shenzhen Auto Show, might exhibit the refreshed Model 3
- Tesla China sales grew 2.44% month-on-month in May 2023
- CEO Elon Musk meets Chinese FM as it eyes Tesla China expansion
- Tesla China rival XPeng drops lidar in G9 SUV for competitive pricing
Tesla’s notable market share growth in the Chinese automotive industry is unsurprising, considering the company’s major price cuts recently. It has also finally launched the facelifted Tesla Model 3 Highland in the local market, potentially boosting the demand for its vehicles further.
The American EV giant currently offers two configurations for the new Model 3, including the RWD variant (RMB 259,900) and AWD trim (RMB 295,900).
