Tesla's (NASDAQ:TSLA) sales of China-made electric vehicles rose by 15.3% year-over-year to 74,117 units in July, according to data from the China Passenger Car Association (CPCA). Deliveries of China-made Model 3 and Model Y vehicles increased by 4.4% compared to June.
In comparison, Chinese competitor BYD saw a significant 30.5% year-on-year increase in passenger vehicle sales, reaching a new monthly high of 340,799 units in July with its Dynasty and Ocean lineups of EVs and plug-in hybrids.
Although Tesla China's 2024 sales figures still trail behind those of 2023, CEO Elon Musk has previously voiced optimism about an improvement in sales this year.
Reuters reported in May that Tesla had reduced production of its best-selling Model Y electric car by a double-digit percentage at its Shanghai plant since March. T
The Shanghai facility, Tesla's largest manufacturing hub worldwide, had planned to cut Model Y production by at least 20% from March to June, according to the report.
Another Chinese automaker Li Auto (NASDAQ:LI) achieved its best-ever monthly performance in July, delivering 51,000 plug-in hybrid and fully electric vehicles, bringing its total deliveries for the year to nearly 240,000 units. This success was mainly driven by strong sales of the L6, its most affordable crossover, which accounted for approximately 40% of last month’s deliveries.
In contrast, sales for Geely, Great Wall Motor, NIO (NIO), and Huawei-backed EV makers saw slight declines. NIO delivered 20,498 units in July, just 711 units fewer than the previous month. Still, the carmaker surpassed the 20,000-unit milestone for the third consecutive month, despite reducing cash incentives for buyers since July 22.
Overall, China's sales of new energy passenger vehicles increased by 31% year-over-year but fell by 5% month-over-month to roughly 722,000 units from July 1-28, according to the China Passenger Car Association data.