Tesla’s (NASDAQ:TSLA) In July, sales of China-made electric vehicles increased by 15.3% year-over-year to 74,117 units, according to data from the China Passenger Car Association (CPCA). Deliveries of China-made Model 3 and Model Y vehicles went up by 4.4% compared to June.
In contrast, Chinese competitor BYD saw a significant 30.5% year-on-year increase in passenger vehicle sales, reaching a new monthly high of 340,799 units in July with its Dynasty and Ocean lineups of EVs and plug-in hybrids.
Even though Tesla China’s sales in 2024 are lower than those in 2023, CEO Elon Musk has expressed optimism about a potential increase in sales for this year
According to a report by Reuters in May, Tesla has reduced the production of its popular Model Y electric car by a double-digit percentage at its Shanghai plant since March. The report states that Tesla’s largest manufacturing hub globally, located in Shanghai, planned to decrease Model Y production by at least 20% from March to June.
In July, Li Auto (NASDAQ: LI), a Chinese automaker, had its best-ever month, delivering 51,000 plug-in hybrid and fully electric vehicles. This brought the total deliveries for the year to nearly 240,000 units. This success was mainly due to strong sales of the L6, the company’s most affordable crossover, which made up approximately 40% of last month’s deliveries.
In contrast, Geely, Great Wall Motor, NIO (NIO), and Huawei-backed EV makers experienced slight declines in sales. NIO delivered 20,498 units in July, just 711 units fewer than the previous month. However, the carmaker surpassed the 20,000-unit milestone for the third consecutive month, despite reducing cash incentives for buyers since July 22.
