No Longer Tesla, Sales Of Electric Cars In China Are Now Controlled By BYD And Xiaomi

The latest Tesla Model Y. (Doc. Tesla)

JAKARTA The fierce competition in China's electric car market is heating up. A recent survey from UBS shows a surprising shift in consumer preferences. Tesla, once considered the leader of technology, now has to recognize the superiority of two local players: BYD and the aggressive newcomer, Xiaomi.

According to a team of UBS analysts led by Joseph Supak, China's consumer preferences towards Tesla as the main preferred electric car brand have fallen sharply to just 14 percent. This figure is down significantly from 18 percent in the previous year, placing Tesla behind BYD and Xiaomi.

"In China, we see intense competition and Tesla is no longer seen as a technology leader," the UBS research note said, quoted by CnEVPost, Wednesday, May 28.

The survey also revealed that Chinese consumers generally prefer domestic brands over Tesla, although Tesla is still superior to other foreign brands.

Tesla's retail sales data in China in the first quarter of this year showed 134,607 units, a slight increase of 1.65 percent on an annual basis, but a drastic drop of 31.64 percent compared to the fourth quarter of 2024. Sales in China accounted for 40 percent of Tesla's total global shipments reaching 336,681 units in the same quarter. Meanwhile, during the January to April 2025 period, Tesla's retail sales in China's domestic market were recorded at 163,338 units, down 0.31 percent compared to the same period last year. Tesla's battery electric car (BEV) market share in China also shrank to 7.96 percent in the January-April period, compared to 11.44 percent in the same period the previous year.

Furthermore, UBS records also highlight the challenges that Tesla faces in the United States and Europe markets. In the US, UBS sees a "Tesla saturation" with a BEV share of around 48 percent, coupled with a limited product line and affordability issues. Meanwhile, in Europe, the political involvement of Tesla CEO Elon Musk is suspected to have contributed to the brand's image.

Globally, consumer interest in considering Tesla fell to 36 percent from 39 percent last year. As the main choice of electric cars, Tesla's share also decreased to 18 percent from 22 percent. In the US, Tesla as the main choice fell from 38 percent to 29 percent, and in Europe it fell from 20 percent to 15 percent. In fact, in Europe, brands like Audi and BMW are now surpassing Tesla in terms of brand considerations.