Tesla has recently released news of its own from China, with a claim of 78,828 EVs sold in March, down 11.5% YOY. Increased domestic competition from local manufacturers, such as BYD and Geely, are rapidly taking market share. This new wave of competition has caused a dramatic drop. The numbers that Tesla sold in China were first made public by the China Passenger Car Association (CPCA) on Wednesday.
Tesla’s sales numbers represented a significant month-over-month recovery, despite the year-on-year drop. After selling just 30,688 vehicle sales in February, March’s figure was a staggering increase of 157%. This dramatic jump illustrates the reality that it is getting increasingly difficult for Tesla to defend its market share. Still, it’s a solid number considering this is a month-over-month extremely seasonal period.
The intense competition from native players is apparent. According to the China Passenger Car Association (CPCA), BYD sold an incredible 371,419 NEVs just in March. Geely, for its part, experienced a significant jump in its sales numbers, up 167% year-on-year to 119,696 vehicles in December. In addition, Geely has a controlling stake in brands like Volvo Cars, which adds to its strong portfolio of EV offerings.
Tesla’s troubles are compounded despite having released the new and improved version of its Model Y in January. This new model was created in order to increase its foothold in the quickly growing Chinese market. The rise of local brands, along with a growing competitive landscape, has caused Tesla to change course. So much so, that Tesla’s shares dropped in premarket trading on Wednesday immediately after the release of these disappointing sales figures.
China’s electric vehicle market is changing fast. Local manufacturers are innovating and reaching new markets farther from home than ever before. Competition certainly is getting more intense. Tesla will need to meet these new challenges head on, and continue to meet changing consumer demands in order to preserve its market share.