In May, Tesla’s sales of electric vehicles manufactured in China dropped by 6.6 percent compared to the previous year, totaling 72,573 units. This decline marked the second consecutive month of year-on-year decreases, following an 18 percent drop in April and a 0.2 percent gain in March. The U.S. automaker has been cutting production of the Model S and Model 3 by a double-digit percentage at its Shanghai plant since March to address weakening demand for its best-selling model in China. However, deliveries of the Model 3 and Model Y vehicles produced in China increased by 16.7 percent from April.
Meanwhile, Chinese competitor BYD has seen a 38.2 percent year-on-year increase in sales, selling 330,488 passenger vehicles in May. BYD offers the Dynasty and Ocean series of electric and plug-in hybrid vehicles in the market.
Despite Tesla’s challenges in China, the electric vehicle market continues to show growth and competition. Companies like Tesla and BYD are competing to capture market share and meet the increasing demand for electric and hybrid vehicles in the region. The shift towards electric vehicles reflects a broader trend towards sustainability and environmental consciousness in the automotive industry.