Prime Highlights:
Tesla achieved a new record in China in 2024, with a yearly increase of 8.8% to more than 657,000 units.
In December, sales were up by 12.8% to 83,000 units, but market share went down from 7.8% in 2023 to 6% in 2024.
Key Background:
Tesla posted record sales in China in 2024, with annual figures increasing 8.8% to over 657,000 vehicles. The U.S. electric vehicle leader saw a 12.8% increase in sales in December, reaching 83,000 units. However, maintaining this growth in 2025 could prove challenging as local Chinese automakers intensify their competition.
Their market share in China also declined, from 7.8% in 2023 to 6% in the first 11 months of 2024, analysts observe, while new-energy vehicle-makers, led by BYD, are showing more dominance in that market, which now accounts for around 34% of the country’s vehicle sales. Bill Russo, founder of Automobility, expressed skepticism about Tesla’s ability to recover its lost market share, citing the company’s aging product lineup and limited offerings in comparison to local competitors, who provide a wider range of products at more competitive prices.
Price cuts have been the key in the way Tesla has managed to sustain sales growth over time. In December, it cut the price of its Model Y by 10,000 yuan ($1,365) and also extended zero-interest financing on its models. Yet even after that, Tesla’s pricing remains higher than some comparable Chinese models. For instance, BYD’s Seagull and Yuan Plus models start at much lower prices, starting from 96,800 to 136,800 yuan.
Cash subsidies and favorable financing options are also being offered by Li Auto and Nio, some of the other domestic manufacturers. There’s also a potential where Tesla’s vehicles can be reduced in price by upto 50,000 yuan more due to the Chinese government’s trade-in subsidy program. This is again adding pressure on the company.
Experts say that Tesla might not lose all its ground, but the grip is definitely under tension. According to Joe McCabe, CEO of Auto Forecast Solutions, “the company is the Apple of cars”; the reason behind it is high brand value and technological superiority, but the growing competition for a slow pace in launching innovative products can make Tesla an underachiever because Chinese EV companies remain active, allowing themselves to launch new features and models, the once-produced dominance of Tesla in the world’s largest EV market has made it an uphill task.
