Hit By Local Manufacturers, Tesla Sales In China Continue To Slum

Tesla Model Y. (Photo: Tesla)

JAKARTA Bad news facing Tesla in China where only recorded sales of 67,886 units of electric vehicles (EVs) in July, showed an 8.4 percent drop compared to the same month last year and 5.2 percent compared to June. This figure marks a nine-month decline in a row in the last ten months, with a short break in June when the US manufacturer rose slightly 0.8 percent on an annual basis.

Reported by CarNewsChina, Monday, August 4, Tesla's sales of China include domestic sales and exports from Shanghai Gigafactory which produces Model 3 sedans and Model Y SUVs. From January to July this year, Tesla China has sold 432,360 cars, down 13.7 percent from the same period last year.

If calculated in total, Tesla's decline in sales in China has been going on over the past ten months, with the latest double-digit growth recorded in September 2024. This is due to intense competition in the Chinese market, where the Model Y faces heavy pressure from local rivals, as well as a decline in exports to overseas markets.

Model Y itself is Tesla's mainstay in China. In 2024, Tesla managed to sell 480,309 units of Model Y, making it the best-selling car in China and accounting for 74.6% of Tesla's total sales in the domestic market. This medium-sized SUV managed to survive amid the onslaught of Chinese EV manufacturers, including Xpeng G6, Deepal S7, Zeekr 7X, and Onvo L60.

However, since the launch of the facelift version called Juniper in January, Model Y has lost momentum in China. In the first half of 2025, sales reached 171,491 units, representing a 17.5 percent drop on an annual basis.

To overcome this challenge, Tesla plans to launch a six-seater Model Y L in China this fall. The model is designed to compete with MPV and three-line popular Chinese SUVs such as Li Auto i8, Onvo L90, or Aito M8.