Tesla's China Sales Fall as Competition Heats Up

By Jiahui Huang

Tesla's sales in China fell in November amid intensifying competition from Chinese rivals.

The U.S. electric-vehicle maker sold 78,856 China-made cars in November, down 4.3% compared with a year earlier but 15% higher from the previous month, data from the China Passenger Car Association showed Tuesday.

Car sales have been robust thanks to the government's trade-in subsidies, automakers' promotional events in November and an auto show in the city of Guangzhou, the CPCA said.

The CPCA estimated sales of electric passenger cars in China last month rose 51% from a year earlier to about 1.46 million units.

Chinese automakers have benefited from the government's trade-in subsidies significantly over the last two months. As of Nov. 18, more than 4 million applications have been submitted for these subsidies, the CPCA said. The majority of those applications were for new energy vehicles, a widely used term in China referring to hybrids and EVs, due to bigger subsidies for the category compared with those for conventional gasoline-powered cars, the CPCA added.

Tesla ceded the mantle of second-biggest EV seller in China to a Chinese rival for the third straight month.

Peer BYD sold a record 504,003 vehicles in November, marking its second consecutive month of over 500,000 vehicles sold.

To achieve their annual sales targets amid stiff competition, Tesla and BYD have recently offered discounts. The U.S. EV giant has said it would lower the price on its Model Y car in China and also offer five-year interest-free loans.

Write to Jiahui Huang at [e-mail]

(END) Dow Jones Newswires

12-03-24 0500ET