Tesla's China-made EV sales rise 15.3 per cent y/y in July

Tesla, the prominent American electric vehicle manufacturer, has reported a significant increase in sales for its China-produced models in July, according to data released by the China Passenger Car Association (CPCA) on Friday. The company saw a 15.3 per cent year-over-year growth, with a total of 74,117 units sold during the month.

This surge in sales encompasses both the Model 3 sedan and the Model Y SUV, which are manufactured at Tesla's Shanghai Gigafactory. When compared to the previous month of June, deliveries of these China-made vehicles showed a modest but positive uptick of 4.4 per cent.

In contrast, BYD, a major Chinese competitor in the electric vehicle market, experienced an even more substantial growth in its passenger vehicle sales. The company, which offers both pure electric vehicles and plug-in hybrids under its Dynasty and Ocean product lines, reported a remarkable 30.5 per cent increase in year-on-year sales. This growth propelled BYD to a new monthly record, with an impressive 340,799 units sold in July.

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These figures highlight the ongoing competition and rapid expansion in the Chinese electric vehicle market, with both domestic and international manufacturers vying for market share. Tesla's continued growth in China underscores the importance of this market for the American automaker, while BYD's record-breaking performance demonstrates the strength of local brands in the world's largest automotive market.

In other news, Tesla's China shipments saw a positive increase, providing a welcome boost for Elon Musk's company after disappointing second-quarter earnings that fell short of analyst expectations for the fourth consecutive quarter. This news came as a silver lining, especially considering investors' disappointment over Tesla's decision to postpone its robo-taxi prototype showcase event by about two months to October.

The upward trend in Tesla's China figures contrasted sharply with the performance of several other automakers in the country, many of whom reported significant month-on-month declines amid weak consumer spending. Despite this, the overall electric vehicle (EV) and plug-in hybrid wholesale figures in July were estimated to have increased by 29 per cent compared to July 2023, according to the China Passenger Car Association (PCA).

Among the carmakers that have reported their monthly figures, Zeekr Intelligent Technology Holding Ltd., the EV brand of Geely Automobile Holdings Ltd., experienced the most substantial decline, with sales dropping 22 per cent from June to 15,655 units. A Zeekr spokesperson explained that equipment checks and repairs along production lines are typically scheduled for the summer months.

Zeekr's production lines are being adjusted to accommodate several new models, with the company still aiming for a monthly production rate of 30,000 units for one month in the fourth quarter.

Geely, Zeekr's parent company, reported a 9.2 per cent decrease in July sales, while Great Wall Motor Co. saw a 6.9 per cent decline.

The PCA reported that China's new-energy passenger vehicle wholesales in July were estimated at 950,000 units, representing a 3 per cent month-on-month decrease. This decline is attributed to slower economic growth and subdued consumer spending. In response, the Chinese government has been implementing measures to stimulate EV sales, including doubling the cash incentive for trading in older vehicles as part of a broader 300 billion yuan (USD 41.4 billion) package aimed at boosting consumption.

BYD Co. maintained its position as China's best-selling car brand in July, though its passenger vehicle sales only marginally increased by 0.2 per cent to 340,799 units. While plug-in hybrid sales saw a significant increase, reaching 210,799 units due to discounting strategies, pure battery EV sales fell to their lowest level in five months.

Among China's other three US-listed EV makers - Nio Inc., Xpeng Inc., and Li Auto Inc. - Li Auto stood out with a 6.8 per cent increase in sales to 51,000 units, largely due to the popularity of its extended-range EVs.

This mixed performance across various automakers highlights the complex and competitive nature of the Chinese EV market, with some companies thriving while others face challenges in maintaining growth amid economic headwinds.