BEIJING (Reuters) – U.S. automaker Tesla sold 94,139 Chinese-made electric vehicles (EVs) in December, 68.7% compared to the same month last year, according to data from the China Passenger Car Association (CPCA). increased.
Deliveries of China-made Model 3 and Model Y vehicles increased 14.2% from November.
Chinese rival BYD, which offers EV and gasoline-electric hybrid models Dynasty and Ocean, delivered 341,043 passenger cars in December, a 13% increase from November and a year-on-year increase. This was an increase of 45%.
BYD sold 944,779 new energy vehicles in the fourth quarter, including 526,409 pure EVs, a record quarter.
According to Tesla statistics, annual sales of Chinese-made cars, including exports, totaled 947,742 cars, accounting for 52.4% of US EV pioneer Tesla’s global shipments.
Tesla’s Shanghai factory is the world’s largest, with the capacity to produce 1.1 million Model 3s and Model Ys annually, supplying China as well as other countries including New Zealand, Australia and Europe.
Tesla sold a record 484,507 cars worldwide in the fourth quarter, beating market expectations, but it lost the top EV maker position to BYD.
Tesla faces increasing competition in China, the world’s largest car market, but despite increased price competition and slowing demand for EVs, Chinese latecomers have not been prevented from entering.
In China, Tesla launched a price war early last year that involved more than 40 brands and hit the industry’s profitability.
While BYD-led sales promotions continue with various discount policies, the US EV giant suspended price adjustments in the Chinese market in December after making five upward price revisions in the previous month.
As the EV race intensifies, Chinese smartphone maker Xiaomi unveiled its first EV last week, aiming to become one of the world’s top five automakers in the next 15 to 20 years.
Huawei, one of Xiaomi’s closest Chinese mobile phone rivals, has approached Mercedes-Benz and Volkswagen’s Audi about investing in smart cars, Reuters reported.
Tesla has acquired land for a Megapack battery manufacturing factory in Shanghai, with production scheduled to begin in the fourth quarter of 2024. This suggests that progress on the project is slower than originally planned.
Tesla’s ambitious plans to expand EV production capacity in Shanghai, the world’s largest manufacturing hub, still depend on Chinese regulatory approval.
(Reporting by Qiaoyi Li, Zhang Yan and Brenda Goh; Editing by Jamie Freed and Mark Potter)