Tesla’s retail sales in China fell in February as seasonal factors and production adjustments impacted deliveries, data from the China Passenger Car Association (CPCA) showed on Monday.
The U.S. electric vehicle (EV) maker sold 30,688 vehicles from its Shanghai plant last month, including 3,911 for export. Domestic sales stood at 26,777 units, marking an 11.16% decline from 30,141 a year earlier and a 20.55% drop from January’s 33,703 units, according to CPCA data.
See also: Tesla’s Facelifted Model Y Reportedly Garners 200,000 Pre-Orders in China
Industry analysts attributed the decline partly to the Chinese New Year holiday, which ran from January 28 to February 4 and led to disruptions in industrial production and consumer activity. Additionally, Bloomberg reported on January 15, citing sources familiar with the matter, that Tesla planned to suspend part of its Shanghai production lines for about three weeks during the holiday period to optimize equipment for its revamped Model Y.
Tesla operates a factory in Shanghai that produces the Model 3 sedan and Model Y crossover, supplying both local and international markets. The company follows a production strategy that prioritizes exports in the first half of each quarter and domestic deliveries in the latter half.
See also: BYD’s Blade vs. Tesla’s 4680: Efficiency, Cost, and Design Compared
Exports from Tesla’s Shanghai plant fell sharply to 3,911 units in February, down 87.06% from 30,224 a year earlier and 86.76% from 29,535 in January. Overall, Tesla China’s wholesale sales, including exports, dropped 49.16% year-on-year to 30,688 units, compared with 60,365 in February 2023.
The Model Y saw a significant drop in sales, with wholesale figures, including exports, reaching 8,032 units in February—a 77.84% decline from 36,248 a year earlier and a 75.08% decrease from January’s 32,233 units. Meanwhile, Model 3 sales held relatively steady, with 22,656 units sold, down 6.06% from 24,117 in February 2023 and 26.93% lower than January’s 31,005 units.
See also: Tesla Extends Model 3 Insurance Subsidy in China to March 2025
China’s overall retail sales of passenger new energy vehicles (NEVs) totaled 686,000 units in February, reflecting a 79.7% year-on-year increase but a 7.8% decline from January. Battery electric vehicles (BEVs), a subset of NEVs, accounted for 427,000 units, up 94.4% year-on-year but largely unchanged from January.
Tesla’s share of China’s NEV market stood at 3.90% in February, while its share of the BEV segment was 6.27%, according to CPCA data.
See also: Tesla Revives 0% APR Financing for Model 3 Amid End-of-Quarter Sales Push
For the January-February period, Tesla’s retail sales in China totaled 60,480 units, down 13.63% from the same period last year. The company also exported 33,446 units from its Shanghai facility in the first two months of 2024, representing a 45.87% year-on-year decline.