Tesla’s retail sales in China declined in July, marking the fifth month of year-on-year decreases so far this year, as the electric vehicle maker navigates shifting demand in the world’s largest new energy vehicle (NEV) market.
The U.S.-based automaker sold 40,617 vehicles in China last month, down 12.14% from 46,227 units a year earlier and down 33.94% from 61,484 units in June, according to data released on Thursday by the China Passenger Car Association (CPCA). Despite a brief rebound in June, Tesla has recorded annual declines in Chinese retail sales for five out of the past seven months.
Tesla’s Shanghai factory, which manufactures the Model 3 sedan and Model Y crossover for both local and export markets, shipped 27,269 vehicles abroad in July. That figure represents a 2.23% decrease from a year earlier, but a significant 169.59% increase from June. The company reiterated that its production cycle typically prioritizes exports in the first half of each quarter, followed by local deliveries in the second half.
Including exports, Tesla’s wholesale volume from its China plant totaled 67,886 vehicles in July, down 8.41% year-on-year and 5.19% month-on-month. While Model Y wholesale sales rose 10.71% to 45,838 units from a year ago, they declined 10.57% from June. Meanwhile, Model 3 wholesale volume dropped 32.60% year-on-year to 22,048 units, though it was up 8.37% from June.
Tesla’s market share in China’s NEV segment stood at 4.12% in July, down from 5.53% in June. In the battery electric vehicle (BEV) segment, its share fell to 6.69%, from 9.30% the previous month. Overall retail sales of NEVs in China reached 987,000 units in July, up 12.0% from a year earlier but down 11.2% from June, the CPCA said. BEV sales rose 24.5% year-on-year to 607,000 units.