February 7, 2023

Tesla’s retail sales jumped in China after price cuts: data

SHANGHAI (Reuters) – Data compiled by China Merchants Bank International (CMBI) showed retail sales of Tesla Inc in China rose in January after it slashed prices for its best-selling model earlier in the month.

CMBI data showed that Tesla’s average daily sales in China from January 9 to January 15 jumped 76% compared to the same period in 2022 to 12,654 vehicles.

That compared to a 14.5% year-on-year decline in total retail vehicle sales in China in the same week, the data showed, even though sales of electric and hybrid vehicles in the country increased by 36.5%.

Tesla did not immediately respond to a request for comment on CMBI data on its sales.

Tesla cut prices for the Model 3 and Model Y cars by between 6% and 13.5% in China as of January 6 in the face of what analysts said were signs of slowing demand and intensifying competition in the world’s largest auto market.

After cutting prices in China and other Asian markets, Tesla followed it up with price cuts in the United States and Europe.

Brand Aito and Huawei Technologies-backed Xpeng Inc have followed Tesla in lowering the prices of their electric cars in China.

CMBI data showed that Xpeng’s sales fell 36% from a year earlier in the week of Jan. 9 to Jan. 15. The data showed that sales of Tesla’s largest EV competitor in China, BYD, more than doubled in the week to 40,435 vehicles, including electric and hybrid vehicles.

(Reporting by Zhang Yan and Brenda Goh; Editing by Susan Fenton)