Sales of Chinese-made electric vehicles dropped by 6% in April compared to the same month last year, continuing a seven-month trend of drops as the US-based manufacturer struggles with fierce competition from its Chinese rivals and a damaged reputation in Europe.
The China Passenger Car Association (CPCA) reported that deliveries of Chinese-made Model 3 and Model Y automobiles, which are exported to markets such as Europe and sold in China, totaled around 58,459 units last month, a 25.8% dip from March.
Because of CEO Elon Musk’s endorsement of far-right political causes and candidates in Europe, Tesla’s sales fell precipitously throughout Europe in April. The market share of Chinese competitors grew.
In addition, there have been demonstrations against Musk and a decline in Tesla sales in the US.
Tesla is stepping up its endeavors to sell into new regions like India and Saudi Arabia, where Chinese EV companies are also planning expansions, in an attempt to partially offset the sales downturn in key European and American markets. In the first quarter, China was Tesla’s largest market.
With its Ocean and Dynasty lineup of EVs and plug-in hybrids, BYD (002594.SZ), saw a 19.4% over the past year rise in global passenger car sales last month to 372,615 vehicles.
Approximately a dozen new electric crossover models that made their debut at the Shanghai auto show last month are priced to compete with Tesla’s top-selling Model Y, which might increase the pressure on the American EV specialist both domestically and internationally.
In order to protect Tesla’s market share in China, mass production of the cheaper Model Y will start in Shanghai in 2026.
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