China Passenger Car Association (CPCA) released data on Tuesday (July 2) showing that Tesla’s sales of electric vehicles produced in China dropped by 24.2% in June compared to the previous year, marking the fourth consecutive decline this year.
According to CnEVPost, which focuses on electric vehicle news in China, Tesla sold a total of 71,007 electric vehicles produced in China in June, including sales in the domestic market and exports to markets outside of China. This figure represents a 24.2% decrease from the 93,680 vehicles sold in the same period last year and a 2.16% decrease from the 72,573 vehicles sold in May.
In addition to the June sales data, Tesla’s sales of electric vehicles produced in China in the second quarter amounted to 205,747 units, showing a 16.77% year-on-year decline compared to the same period last year and a 6.85% decrease from the first quarter.
In the first half of this year, Tesla sold a total of 426,623 electric vehicles produced in China, a 10.47% decrease compared to the same period last year.
After years of rapid growth, Tesla emerged as the world’s most valuable car manufacturer, but now it is facing a slowdown. The company is grappling with weakening automotive demand and intensified competition, with particularly fierce competition in China.
According to a Reuters report in May, since March, Tesla has cut production of its best-selling Model Y at its Shanghai factory by double-digit percentages to respond to softening demand in China.
The CPCA did not provide a detailed analysis of Tesla’s sales in China and exports from the Shanghai factory in the preliminary data.
Later on Tuesday, Tesla announced its global production and delivery data for the second quarter, which drew significant attention from the public.
The data revealed that Tesla delivered 443,956 vehicles worldwide in the second quarter, a 4.8% decrease compared to the previous year but exceeding analysts’ average expectations. Actual production amounted to 410,831 vehicles, a 14% decline from the same period last year.
Tesla has a factory in Shanghai where it produces the Model 3 and Model Y, catering to both local customers and serving as an export hub.