Tesla Model Y sales dip in China despite refresh production ramp-up

Tesla Model Y experienced quite a shift in its sales dynamics in China during April. Domestic retail sales of the popular electric SUV saw a big decline of 24% compared to the same period last year, but exports of the Model Y from Tesla's Shanghai factory surged by an impressive 149%.

Data from the China Passenger Car Association (CPCA) reveals that only 19,984 units of the Model Y were sold in China in April, a sharp drop from the 26,356 units sold in April of the previous year and an even bigger drop from the 48,189 units sold in March. Despite this downturn in local sales, the Model Y still accounted for nearly 70% of Tesla's total retail sales in China for the month, which reached 28,731 vehicles. Over the first four months of the year, a total of 101,873 Model Y vehicles were sold in China, representing nearly a 20% year-on-year decrease and contributing just over 62% to Tesla's overall China retail sales of 163,338 units.

The lower domestic sales coincide with a big jump in Model Y exports. In April, Tesla shipped 13,976 Model Y units from its Shanghai Gigafactory - a remarkable 149.3% increase compared to the previous year and an even more staggering 1,563.8% jump from March. Looking closer at the January-April period, Model Y exports totaled 21,381 units, revealing a 47.8% drop year-on-year.

Tesla's Shanghai facility has an annual production capacity of around one million vehicles, and it also manufactures the Model 3 sedan. The company has previously indicated a pattern of prioritizing export production in the first half of each quarter, followed by production for the local Chinese market in the latter half.

Complicating the situation even more is the growing competition from local Chinese EV manufacturers. Domestic electric cars are getting better and Model Y's appeal among Chinese consumers is falling. In an effort to maintain sales momentum, Tesla China announced on April 22 that customers buying any Model Y variant before June 30 will benefit from a five-year, zero-interest financing plan.

The sales of the Tesla Model 3 in China paint a contrasting picture. In April, retail sales of the Model 3 reached 8,747 units, recording a 72.7% increase compared to the 5,065 units sold in the same month last year. And yet, this was 66.3% less than the 25,938 units sold in March. For the January-April period, Model 3 retail sales in China totaled 61,465 vehicles, another big 65.6% year-on-year jump, contributing 37.6% to Tesla's total China retail sales.

Model 3 exports from China also experienced a big shift. In April, 15,752 Model 3 units were exported, a 37.3% drop year-on-year but a huge 308% jump from March. At the same time, Model 3 exports reached 46,494 units over the first four months of the year - and that is a substantial 40.6% year-on-year decline.

Overall, Tesla China sold a total of 58,459 vehicles in April, including both domestic sales and exports. Of this figure, 28,731 units were sold within China, or 8.6% less than the 31,421 units sold in April of the previous year and 61.2% less than the 74,127 units sold in March. Exports from Giga Shanghai in April amounted to 29,728 vehicles, a slight 3.3% drop year-on-year but a massive 532.4% increase compared to the 4,701 units exported in March.

Watching Tesla's sales numbers from China is like watching a seesaw - one month up, the next one down. It's hard to put a finger on a certain trend since the company is adjusting its sales strategy as the market is changing. To get a full picture, we will have to wait until the end of this year or at least until the Q2 results.

Via