China Passenger Car Association (CPCA) revealed that U.S. automaker Tesla (TSLA.O) delivered a total of 72,115 China-made electric vehicles in the month of October. This figure represented a marginal 2.6% decline from the previous month.
Meanwhile, Chinese automaker BYD, known for producing both electric vehicles (EVs) and hybrid models within its Dynasty and Ocean series, recorded robust performance in October. BYD managed to deliver 301,095 passenger vehicles during the month, reflecting a 5% rise from September and an impressive 38.4% surge compared to the same month in the previous year.
Tesla, led by CEO Elon Musk, has maintained a strategy focused on prioritizing sales, particularly in the highly competitive Chinese EV market. This approach has intensified in response to mounting pressure from local rivals. However, the aggressive discounts offered by Tesla have taken a toll on its profit margins and failed to yield a significant increase in its market share.
Tesla's market share in China's EV segment dipped to 9.89% during the third quarter, down from 12.98% in the second quarter and 9.93% in the same period the previous year. Furthermore, Tesla fell short of third-quarter expectations for gross margin, profit, and revenue. The company also faced production challenges as planned factory upgrades for a revamped version of the Model 3 temporarily curbed production.
In a noteworthy development, Tesla introduced the updated and higher-priced Model 3 in China in September, officially commencing deliveries on October 26.
Within the Chinese EV landscape, domestic automakers have made notable strides in the world's largest auto market. Meanwhile, several foreign brands, including Japan's Mitsubishi Motors (7211.T) and South Korea's Hyundai Motor (005380.KS), have either scaled back or reduced their operations.
BYD, as one of Tesla's most prominent Chinese competitors, solidified its market leadership with a substantial 22.12% gross margin during the third quarter.
Additionally, the Huawei-backed EV brand, Aito, garnered significant attention with its revamped M7 model, receiving over 50,000 orders within the first 25 days following its mid-September launch.