A Tesla’s electric vehicle (EV) moves on a street in Beijing, China October 31, 2023. REUTERS/Tingshu Wang/File Photo Acquire Licensing Rights
BEIJING/SHANGHAI, Dec 4 (Reuters) – Sales of U.S. automaker Tesla’s (TSLA.O) China-made electric vehicles (EVs) skidded 17.8% in November from the same month a year earlier, to 82,432 cars, China Passenger Car Association (CPCA) data showed on Monday.
That marked the biggest fall since December 2022 when Tesla’s sales of China-made EVs fell 21% on the year as the U.S. automaker reduced output and cut prices to deal with rising inventories and weakening demand.
Deliveries of China-made Model 3 and Model Y cars were however 14.3% higher than in October.
Chinese rival BYD (002594.SZ), with its Dynasty and Ocean series of EVs and petrol-electric hybrid models, saw passenger vehicle deliveries set another record at 301,378 vehicles in November, up 0.09% from October and 31% from a year earlier.
Tesla has been under pressure to fend off competition in the world’s largest auto market, though CEO Elon Musk’s charm offensive in China continues unabated.
Musk was among a small group of top U.S. executives who met with Chinese President Xi Jinping before a dinner event on the sidelines of the APEC summit in San Francisco in mid-November.
Xi expressed his support for Tesla’s development in China, the automaker said in a Weibo post. Musk, in response, said he appreciated the rapid development of China’s new energy vehicle sector.
A Tesla-triggered price war in China since the start of the year has roped in more than 40 brands but its share of the country’s EV market dropped to 5.78% in October from 8.7% in September, Reuters’ calculations based on CPCA data show, as EV sales reached a monthly record.
Since late October, Tesla has made five upward price adjustments in China where EV demand growth is slowing as consumers favour more affordable plug-in hybrids even with an ever-increasing range of battery-only vehicles.
Li Auto (2015.HK) last month said mass production and delivery of its first full EV are scheduled for February.
Smartphone maker Xiaomi (1810.HK) has also moved closer to EV production, with a unit of automaker BAIC Group (1958.HK) applying for regulatory approval to build two Xiaomi-branded cars.
Reporting by Qiaoyi Li, Zhang Yan and Brenda Goh; Editing by Bernadette Baum, Kirsten Donovan
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