American automaker Tesla reported a notable drop in its China-made electric vehicle sales of 10.9% year-on-year in September, Reuters reports, citing China Passenger Car Association’s (CPCA) data.
It marks the first-ever drop in Tesla Made-in-China’s (MIC) wholesale vehicle shipments, which include local retail sales and exports.
Tesla’s September performance
According to the report, Tesla sold only 74,073 China-made electric cars last month (down 10.9% YoY). The popular electric sedan Model 3 and electric crossover Model Y also recorded a 12.0% drop from the prior month.
On the other hand, Chinese NEV giant BYD enjoyed a significant 42.8% growth in its passenger vehicle sales to 286,903 in September.
For reference, it only sold 200,973 electrified models in the same period last year, which includes the electric Dynasty and Ocean series and petrol-electric hybrid models.
YTD sales
InsideEVs reported that Tesla’s wholesale EV sales have nearly reached 700,000 this year to date. The total 699,056 units indicate a 45% increase in the same period last year.
However, it must be noted that the company’s significant price cuts from the beginning of the year were the primary reason behind the major sales growth in the January to September period.
In addition, it is also more natural to increase early this year due to the lifting of the COVID-19 safety protocols, including lockdowns in April and May 2022.
Potential growth drivers
Tesla recently released the revamped Model 3 Highland and the upgraded Model Y without a price increase in China.
These two new model variants can significantly aid Tesla in reviving its upward sales trend, considering that customer deliveries for the Model 3 Highland will commence as early as the fourth quarter.
According to Fortune, the latest sales decline of MIC models occurred after a disappointing Q3 2023 delivery figure of 435,059 units (down 6.7% QoQ). Tesla cited its ongoing factory upgrades as the main reason behind the production slowdown.
“A sequential decline in volumes was caused by planned downtimes for factory upgrades, as discussed on the most recent earnings call. Our 2023 volume target of around 1.8 million vehicles remains unchanged.”
Tesla
Nonetheless, Tesla remains the global leader in the electric vehicle industry. However, the Musk-led company must continue to strive to defend its position as BYD is now catching up. The Chinese electric automaker is expanding its share in its home market, with further growth plans in Europe, Latin America, and other Asian markets.
