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China's BYD posted a 21% rise in second-quarter electric vehicle sales, narrowing the gap with Tesla after losing the world's top EV vendor title in the first quarter. BYD sold 426,039 EVs from April to June, nearly 18,000 vehicles fewer than Tesla's deliveries, but significantly closer than the previous quarter's gap of over 86,000. Tesla's second-quarter deliveries fell by 4.8% to 443,956 vehicles, marking the first consecutive quarterly decline as the company faces stiff competition in China and slow demand due to a lack of affordable new models. Despite this, price cuts and incentives helped Tesla beat expectations, boosting shares by about 5% in morning trading.
- Tesla's China-made EV sales in June dropped 24.2% from a year earlier to 71,007, continuing a year-on-year decline for the third month. The company has reduced production of its best-selling Model Y at its Shanghai plant since March to address weakening demand in China, its second-largest market. In contrast, BYD maintained steady growth in EV sales, while other Chinese EV makers like Nio reported significant growth last quarter. Price cuts and the shift in consumer demand to EVs and hybrids have driven strong sales for Chinese EV makers recently, with new energy vehicles making up 46.7% of total car sales in China in May, a new monthly high.
Why it matters
This news highlights the intensifying competition in the global EV market and the shifting dynamics within the Chinese auto industry.
