Tesla Chine sales data was released by China Passenger Car Association (CPCA) on Tuesday. It showed that the automaker sold 88,869 units in March including both domestic and exports. It is up by 35.0% to last year in March.
In February, the U.S. electric car maker delivered 74,402 China-made Model 3 and Model Y electric cars, but in March, that number surged by 19.4% to reach an even higher figure. However, BYD outperformed Tesla with the sale of 206,089 units of its Dynasty and Ocean series of EVs and hybrids last month, marking a 97.5% increase from the previous year according to CPCA data. Although Tesla achieved record quarterly vehicle deliveries on a global scale between January to March, its quarter-on-quarter sales growth was modest despite price reductions, which could be attributed to rising competition and a grim economic outlook.
According to China Merchants Bank International(CMBI) data, Tesla’s retail sales in China are on track to show the best quarter in the first three months. As of March 26, Tesla had sold a total of 122,801 units, accounting for 13% of China’s new energy car sales, which includes both pure electric and plug-in hybrid cars.
Global sales
The delivery and production numbers are recorded results for the EV maker. In the fourth quarter of 2022, Tesla delivered 405,278 and produced 439,701 units. Those Q4 deliveries also recorded results, but they missed Wall Street expectations. It appears that a large percentage of deliveries came from vehicles produced by Tesla’s Shanghai gigafactory. The automaker has been issuing price cuts in all markets, including China, where the most recent discounts have caused a price war among competitors. The result is an increase in Tesla sales in China from last year, which suggests the East Asian country is helping to boost Tesla’s global delivery numbers.
While Tesla does not provide a breakdown of its delivery and production figures by region, the China Passenger Car Association (CPCA) has reported that the automaker sold 140,453 China-made vehicles in January and February. Although the CPCA has yet to release data for March, if Tesla’s March deliveries in China are similar to those in February, over 50% (or almost 215,000) of the company’s Q1 deliveries would have come from its Shanghai factory. Tesla initiated price cuts for its electric vehicles (EVs) in China back in October, and in January, it further lowered the prices of its Model 3 and Y by 6% to 13.5%. This move intensified a price war in the Chinese EV market, prompting competitors such as Xpeng and Nio, as well as international brands like Volkswagen and Mercedes-Benz, to reduce their prices to remain competitive with Tesla.
