Tesla's Sales in China Reached Record Levels in 2024
Business
In 2024, Tesla’s sales in China increased by 8.8%, reaching over 657,000 vehicles, marking a record high. This growth highlights Tesla as a company that achieved stable growth in China despite intense competition. Tesla's factory in China not only saw significant growth in the domestic market but also in exports to Europe and other regions, although global deliveries decreased by 1.1% over the year.
In December, Tesla sold 83,000 vehicles in China, a 12.8% increase from the previous month, setting a new record. This performance stands out against the backdrop of a global decline in electric vehicle (EV) sales, due to factors such as reduced subsidies in Europe, the U.S. shift towards more affordable hybrid vehicles, and strong competition from China’s BYD.
In 2024, Tesla sold 36.7% of its vehicles in China, making it its second-largest market. However, exports from China dropped by 24%, and deliveries from Tesla's Shanghai plant fell by 0.4% in December, marking the first decline of the year.
Tesla faced difficulties in exporting to Europe as the European Union imposed a 7.8% tariff on Tesla vehicles produced in China in October. Additionally, due to the intensifying price war in China, Tesla offered a 10,000 yuan ($1,370) discount on its best-selling Model Y and extended zero-interest financing for up to five years on certain Model 3 and Model Y vehicles.
BYD, on the other hand, increased its sales by 41%, selling 4.25 million vehicles in 2024. China’s EV champion also boosted its exports by 71.9%, exporting 417,204 vehicles. BYD faced a 17% additional tariff on exports to the European Union, yet still experienced its lowest export figures from China.
To counteract the competition in China, Tesla adjusted its prices but still slightly outpaced BYD, selling 1.79 million vehicles in 2024, ahead of BYD by just a small margin. Thus, while Tesla's successful sales in China have helped mitigate the global downturn, competition is expected to intensify in the coming years.
In 2024, Tesla sold 36.7% of its vehicles in China, making it its second-largest market. However, exports from China dropped by 24%, and deliveries from Tesla's Shanghai plant fell by 0.4% in December, marking the first decline of the year.
Tesla faced difficulties in exporting to Europe as the European Union imposed a 7.8% tariff on Tesla vehicles produced in China in October. Additionally, due to the intensifying price war in China, Tesla offered a 10,000 yuan ($1,370) discount on its best-selling Model Y and extended zero-interest financing for up to five years on certain Model 3 and Model Y vehicles.
BYD, on the other hand, increased its sales by 41%, selling 4.25 million vehicles in 2024. China’s EV champion also boosted its exports by 71.9%, exporting 417,204 vehicles. BYD faced a 17% additional tariff on exports to the European Union, yet still experienced its lowest export figures from China.
To counteract the competition in China, Tesla adjusted its prices but still slightly outpaced BYD, selling 1.79 million vehicles in 2024, ahead of BYD by just a small margin. Thus, while Tesla's successful sales in China have helped mitigate the global downturn, competition is expected to intensify in the coming years.
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