Tesla’s China sales jump after heavy price cuts, but intensifying competition, weakening demand cloud outlook
- Tesla sold 12,654 Model 3 and Model Y vehicles between January 9 and 15, up nearly 80 per cent week on week following the price cuts, according to China Merchants Bank
- The company has cut prices of its Shanghai-made cars by nearly 23 per cent in two tranches since late October
Texas-based Tesla sold 12,654 Model 3 and Model Y vehicles between January 9 and 15, up 76 per cent from the previous seven days, according to data compiled by China Merchants Bank. However, the figure was 14.5 per cent lower than the same period in 2022.
“The massive price cuts [by Tesla] did stimulate sales,” said Phate Zhang, founder of Shanghai-based electric-vehicle news site CnEVpost. “However, fiercer market competition and weaker demand [for premium electric cars] will make it difficult for Tesla to chase sales growth this year.”
On January 6, Tesla slashed prices of the two models by as much as 13.5 per cent following lacklustre deliveries in December. The discounts followed price cuts of up to 9.4 per cent on October 24. As a result, Tesla’s prices have fallen to their lowest levels since the first vehicle rolled off the Shanghai production line in December 2019.
Last Friday, Aito offered a 10 per cent discount on the basic edition of its M5 SUV in a bid to take on Model Y. The entry-level M5 now sells for 259,800 yuan (US$38,278), marginally cheaper than the basic edition of the Model Y at 259,900 yuan.
In December, Tesla delivered 29,387 Model Ys, a month-on-month decline of 44 per cent, according to data from the China Passenger Car Association (CPCA). Sales of the bestselling premium SUV in China plunged 27.4 per cent on a year-on-year basis.
The carmaker also handed over 12,539 Model 3 sedans to customers last month, 24.5 per cent higher than the 10,069 units in November. But the figure was 58.3 per cent lower than the 30,102 units delivered in the same month in 2021.