Shanghai, China – Tesla’s Gigafactory Shanghai delivered 69,129 China-made vehicles in January, marking a year-on-year increase of 9.32%, according to data released by the China Passenger Car Association (CPCA). These wholesale figures encompass both domestic sales and exports.
EV Market Dynamics in China
Despite the year-on-year growth for Tesla, the overall Chinese new energy vehicle (NEV) market experienced a slowdown in January. The CPCA estimates that wholesale volume for passenger NEVs reached approximately 900,000 units, a slight 1% increase compared to the previous year, but a significant 42% drop from December. This seasonal dip is attributed to factors including the post-holiday slow season, the recent introduction of a 5% purchase tax, and uncertainty surrounding vehicle trade-in subsidy transitions.
Market leader BYD reported selling 210,051 NEVs in January, reflecting a year-on-year decrease of 30.11% and a month-on-month decline of 50.04%. In this broader market context, Tesla China’s performance is noted as particularly resilient.
Tesla’s Strategic Initiatives
To navigate the typically softer demand in the early part of the year, Tesla China implemented a low-interest financing program on January 6. This initiative offers loan terms of up to seven years on select vehicles, a first for the automotive industry in China. This move has been followed by similar incentive programs from competitors such as Xiaomi, Li Auto, XPeng, and NIO.
Further bolstering its sales efforts, Tesla China enhanced its promotions on January 26 by reintroducing insurance subsidies for the Model 3 sedan. The CPCA is expected to release a detailed breakdown of Tesla’s domestic sales and export figures later this month.
