Tesla maintains competitive showing in China-made EV sales despite industry headwinds
Tesla’s It has remained a strong contender in Beijing’s competitive electric vehicle scene, as the company’s China-made EV sales rose modestly in January from a year earlier, amid a broader industry slowdown.
Accordingly data Deliveries at Tesla’s Shanghai Gigafactory rose 9% to 69,129 units as of January, published by the China Passenger Automobile Association on Wednesday. 63,238 In January 2025.
The latest January deliveries place Tesla in third place against other Chinese EV manufacturers. BYD While it was the leader with 205,518 shipments, Geely According to the CPCA, it ranked second with 124,252 units.
Despite the increase in deliveries, there is little indication of a real increase in demand for Tesla’s offerings in China, the world’s largest EV market.
The company’s January delivery figures reflect the total number of shipments from Tesla’s Shanghai Gigafactory, which produces the Model 3 and Model Y for domestic and international markets in Europe, Asia-Pacific and elsewhere.
New records for Tesla passenger cars in January – an indication of sales rose slightly In Europe, according to Reuters.
Domestic price war
Tesla has faced stiff competition from a number of Chinese EV brands offering more affordable offerings. Separately reportThe CPCA noted that total sales of Tesla’s EVs produced in China are down 4.8% in 2025; This is one of only two manufacturers in Beijing to report a decline in annual sales compared to the previous year.
Tesla’s base is around 235,500 yuan ($33,943) model 3 The sedan’s price is almost three times that of the base model Seal of BYDAround 79,800 yuan.
Like other automakers, Tesla has tried to stay competitive in China through aggressive price cuts. according to chinese websiteTesla began offering five-year 0% interest loans or seven-year “ultra-low” interest rate loans for orders placed before February 28.
“We have [had] “Really intense price wars are continuing even though the government and industry are urging automakers not to resort to aggressive pricing strategies,” Abby Tu, chief research analyst at S&P Global Mobility, told CNBC.
Despite these extensive price wars, China’s EV market has slowed significantly.
According to CPCA dataSales of new energy vehicles, which include hybrid and battery-powered cars, rose just 1% year-over-year in January, the fourth straight month of slowing growth.
The slowdown is expected to continue as Beijing cuts support for new EV sales. A 5% tax on new energy vehicle purchases has been reintroduced from January 1, after previously being exempt from the full 10% tax for more than a decade. New energy vehicles include battery-powered and hybrid engine cars.
new regulations
Tesla’s challenges have been compounded by a recent announcement from Beijing that will effectively ban hidden door handles.
On Monday, China’s Ministry of Industry and Information Technology announced As of January 1, 2027, all door handles of cars sold in the country must have internal and external mechanical unlocking mechanisms.
The announcement follows a series of high-profile announcements events In the USA and China, passengers in electric vehicles involved in traffic accidents could not be released after their vehicles caught fire due to a power outage in the door locking mechanisms.
While automakers in China have good runway to comply with the new regulations, it remains to be seen how Tesla will comply, given that recessed door handles first became popular as a signature design feature on Tesla’s minimalist vehicles.
Some analysts, such as Tu Le, founder and chief executive of consulting firm Sino Auto Insights, think China’s new car door handle restrictions will create a “decent-sized headache” for Tesla.
But Le said China’s new regulations will likely have little impact on most automakers.
“I think for many Chinese brands this new regulation [will not] Surprise them because regulators consulted OEMs and industry experts extensively when drafting the new regulations,” Le added.
CNBC’s Evelyn Cheng contributed to this report.
Correction: This copy has been updated to correctly reflect the spelling of the name of Abby Tu, principal research analyst at S&P Global Mobility.
