Tesla's China shipments experience downturn amidst rising competition
Tesla is grappling with a decline in shipments from its Shanghai factory, marking the third such instance this year. Preliminary data from China's Passenger Car Association reveals a 6.6% drop in Tesla's shipments, including both domestic sales and exports, to 72,573 vehicles in May compared to the previous year. However, there was a 17% increase in shipments compared to April despite the overall downturn.
Intense competition fuels growth for Tesla's rivals
The electric vehicle (EV) sector in China is witnessing intense competition, with automakers employing strategies such as discounts and rapid new model rollouts to attract consumers. This competitive landscape has spurred growth for Tesla's rivals, including BYD, China's top-selling brand, which saw a 38% surge in vehicle shipments to 330,488 units in May from the previous year. The overall demand for new-energy passenger vehicles remains robust despite the fierce competition.
Strong demand and growth in new-energy vehicle market
The new-energy passenger vehicle market continues to show strong demand. Industry-wide wholesales were estimated at 910,000 units in May, marking an approximate increase of 35% from a year ago. This growth is largely attributed to price discounts offered by EV makers and government subsidies. Despite the overall market growth, Tesla's struggle to maintain its momentum in China stands out against the backdrop of booming sales from local automakers.
