Tesla, Chinese start-ups eclipse Toyota, VW in the world’s largest EV market as buyers focus on cutting-edge technology
- VW sold just 1,267 ID.4 Crozz SUVs between January and May, while Toyota fared even worse, selling a mere 327 units in the same period
- Tesla delivered a combined 33,463 units of its Model 3 sedans and Model Y SUVs in May, while Xpeng and NIO, set monthly sales records in June
Established carmaking giants have got off to a bumpy start in their campaign to tap China’s accelerated pace of electrification, with sales of their new battery-powered vehicle models hitting a stumbling block.
VW, a perennial leader in the mainland’s automotive industry, reported sales of just 1,267 ID.4 Crozz SUVs in the first five months of this year, less than 4 per cent of Tesla’s sales in May alone. Toyota, on the other hand, delivered 327 units of its C-HR EV SUV from January to May.
Both electric-powered SUVs are priced between 200,000 yuan (US$30,850) and 300,000 yuan, a segment dominated by Tesla’s Shanghai-made Model Y, which hit the mainland market on January 1, after the US carmaker priced it 30 per cent lower than its presale quotation.
Other carmakers also suffered setbacks as their new models failed to live up to their high expectations.
“Sales by the conventional carmakers were disappointing,” said Peter Chen, an engineer with car component company ZF TRW in Shanghai. “Young drivers are focusing on the smart features in those high-end EVs. They cannot compete against Tesla and the start-ups in software development.”