According to the latest retail sales data, Tesla is set to report one of its strongest quarters in China. The company became the first EV maker in the country to lower prices as a strategy to protect its market share. During the period of January 1 to March 19, Tesla’s retail sales in China reached 106,915 units, averaging 1,371 units per day, according to data from China Merchants Bank International, which tracks car insurance registrations.
According to data, Tesla’s daily sales average in China during the first quarter of this year was slightly higher at 1,371 units per day compared to the fourth quarter’s 1,327 units sold daily. The company’s profits per car remain higher than other EV makers, allowing them to cut prices up to 13.5% on their best-selling models in January and ignite a price war with BYD and other competitors. Tesla is still behind BYD in its growth pace, who outsold the U.S. automaker by over five times in the January-February period due to its wider range of electrified products offered in China. Tesla plans to refresh their Model 3 and Model Y in the next two years to tackle the issue of an aging product mix that has impacted its customer appeal. The company has also improved the suspension system in the Model Y produced in China since January, receiving praise from Tesla fans on social media.
China EV sales
Tesla is seeing an increase in sales in China, with data from China Merchants Bank International showing that the company’s retail sales in the country totalled 106,915 units from Jan. 1 to March 19, with an average of 1,371 units sold per day. This is slightly higher than the 1,327 units sold daily on average in the fourth quarter of 2020, when Tesla sold a total of 122,038 cars, its best quarter so far. This success can be attributed to the U.S. automaker’s decision to slash prices of its best-selling models by up to 13.5% in China in January, triggering a price war with BYD and several rivals following suit over the next two months.
However, Tesla’s growth pace is still lagging behind BYD, which outsold Tesla by more than five times in the January-February period, thanks to its wide range of electrified products in China. To catch up, Tesla is planning refreshed versions of Model 3 and Model Y in the next two years to tackle an aging product mix that has hit its attractiveness to customers. The company has also improved the suspension system in the Model Y made in China in January to make the ride smoother, which has been received positively by Tesla fans on social media.