BEIJING/SHANGHAI (Reuters) – According to the China Passenger Car Association (CPCA), Tesla, the U.S. automaker, delivered 72,115 electric vehicles manufactured in China in October. Although this represents a 2.6% decrease from the previous month, sales of China-made Model 3 and Model Y cars saw a slight increase of 0.6% compared to the previous year.
On the other hand, Chinese competitor BYD experienced growth in their October sales. They delivered 301,095 passenger vehicles, a 5% increase from September and a significant 38.4% increase from the same period last year. BYD produces both electric and hybrid models from their Dynasty and Ocean series.
In China, Elon Musk’s Tesla has prioritized sales over earnings, facing increased pressure from local rivals. Despite aggressive discounts, Tesla’s market share in China’s EV segment has declined to 9.89% in the third quarter, down from 12.98% in the second quarter and 9.93% compared to the previous year.
Tesla also fell short of third-quarter estimates for gross margin, profit, and revenue, as well as global deliveries. Planned factory upgrades for an updated version of the Model 3 resulted in reduced production. Nonetheless, Tesla introduced the refreshed and higher-priced Model 3 in China in September and officially initiated deliveries on October 26.
In China’s auto market, domestic automakers have been making significant progress. Foreign brands like Mitsubishi Motors from Japan and Hyundai Motor from South Korea have either scaled back or ceased operations. Meanwhile, BYD, Tesla’s main Chinese competitor, achieved a 22.12% gross margin in the third quarter, solidifying its market leadership.
An electric vehicle brand called Aito, backed by Huawei, has also gained attention recently. Their revamped M7 model received over 50,000 orders within the first 25 days after its release in mid-September.
Reporting by Qiaoyi Li, Zhang Yan, and Brenda Goh; Editing by Jamie Freed, Sonali Paul, and William Mallard
