In July, Tesla's EV sales in China weakened as local manufacturers surged.

According to the data from the China Passenger Car Association, Tesla's sales were relatively weak in July, with its electric vehicle sales in China dropping by over 30% compared to June. Meanwhile, domestic electric vehicle manufacturers, introducing more competitively priced models, have gained more market share in China.

As reported by Reuters, Tesla sold 64,285 China-made electric vehicles in July, a 31% decline from its total sales volume in June, but a 128% increase from the same period last year when Tesla's Shanghai Gigafactory underwent upgrades that limited production and sales. The sales dip last month was partially due to Tesla pausing some production to prepare for the relaunch of the redesigned Model 3.

As domestic electric vehicle manufacturers compete with Tesla in the Chinese market, Tesla's sales in China have slipped. According to reports, BYD has maintained a leading position in the sales of China-made electric vehicles, continuously surpassing Tesla. BYD's electric vehicles, being more affordable, have garnered immense interest from Chinese consumers. The sales of their vehicles increased by 61% compared to last year, reaching over 260,000 passenger vehicles.

Last month, other Chinese startups also performed well, with local electric vehicle manufacturers NIO and XPeng releasing higher delivery volumes in July. Both companies launched new electric SUV models, attracting consumers seeking innovative and high-performance electric vehicles.

Despite facing intense competition from domestic electric vehicle manufacturers in China, Tesla was the only foreign brand to increase its market share in China in the first half of 2023, with its competitive advantage still significant. Its deliveries in China reached a record 156,676 vehicles in the second quarter, showcasing outstanding sales performance.

The China Passenger Car Association will release comprehensive data for July later this month, with the sales of "new energy vehicles" in China expected to reach 750,000 units. According to data from the China Association of Automobile Manufacturers, sales of "new energy vehicles" in China surged, with over 800,000 units sold in June, marking a 33.4% increase year-over-year.