Tesla's China-Made EVs sales Increase 3% in August

Tesla’s EV sales: Tesla's China-made electric vehicle sales rose 3 per cent year-on-year in August, data from China Passenger Car Association showed on Monday. Deliveries of Model 3 and Model Y from the U.S. carmaker jumped 17 per cent compared to July, reflecting growing momentum in the world's largest EV market.

Tesla's modest increase in August contrasted with the robust, fierce competition from other local Chinese automakers such as BYD. The latter achieved a remarkable surge of 35.3 per cent year-on-year in its passenger vehicle sales to an all-time monthly high of 370,854 units, while other local competitors Leapmotor and Li Auto also saw increased sales for the month at 32,119 units and 26,717 units, respectively.

That represents a more-than threefold rise in sales compared with the same month in 2018 and a 25 per cent jump from August, as domestic deliveries and exports to Europe surge. This also marks a continuation of Tesla's extended incentives for local buyers and growing government support. Despite downsizing its local sales force as part of Tesla's global layoffs, Tesla's sales performance has shown a positive trend in China in the third quarter.

Deliveries in July jumped 78 per cent year-on-year in tier-three cities, according to data from CMBI, while delivery rose 47 per cent in second-tier cities like Hangzhou and Nanjing. CMBI analyst Shi Ji forecasted that Tesla's retail sales volume in China may reach 65,000 units in August, which could be the highest quarterly sales volume in China for Q3 2024.

As the economy slowed, Tesla has also attempted to woo buyers with a financing plan that enables zero-interest loans for as long as five years since April. Endorsements from various local governments have made Tesla cars qualified for official buys too. That month, China's top auto industry association ratified Tesla's data collection practices as up to standard, allowing the vehicles to enter previously restricted government compounds.