BYD broke its record for sales in August, while Tesla came close to achieving its best performance in the ultra-competitive Chinese market over the past year as Elon Musk’s EV company regained some momentum.
BYD, the world's largest EV maker, reported a 35% surge in its China passenger vehicle sales in August compared to the same month last year, reaching a record monthly high of 370,854 units. Other local EV competitors, including Leapmotor and Li Auto, also reported increased sales.
BYD’s growth was driven by booming sales of plug-in hybrids, which use smaller batteries that require less lithium and other metals compared to fully battery-powered EVs.
Tesla announced it sold more than 63,000 cars in the world's largest auto market last month, a substantial 37% increase from July, though still slightly down from the 64,694 units sold in August last year. Including exports, data from the China Passenger Car Association showed Tesla’s sales grew 3% in August year-on-year, reaching 86,697 units.
Analysts noted that Tesla’s sales increased primarily due to strong demand outside major Chinese cities like Beijing and Shanghai.
What’s particularly interesting about this sales performance is that it followed a production cut in May and part of June due to a buildup of unsold inventory, and came after Elon Musk’s unilateral decision to cut more than 10% of the company's workforce—a reduction that has been gradually reversed.
Contributing to Tesla’s regained sales momentum were initiatives such as zero-interest loans of up to five years for buyers (offered since April), a buyer’s lottery for a free trip to a US car factory, and assistance from several local governments, which have made Tesla vehicles eligible for official car purchases in the past two months.
Earlier this year, Tesla received a crucial regulatory approval when the country's top auto industry association stated that data collection by Tesla vehicles complied with regulations, allowing the cars to enter certain government compounds from which they were previously banned, making them accessible to many Chinese government employees.
Deliveries of Tesla's China-made Model 3 and Model Y vehicles increased by 17% from July.
According to reports from Reuters this week, Tesla plans to produce a six-seat variant of its Model Y car in China starting late next year. Similar plans are reportedly in place for a European variant to be produced at its Berlin factory. However, there was no mention of the much-hyped robotaxi variant or the so-called cheap Tesla.
