In 2024, Tesla Inc. recorded an 8.8% increase in sales, which reached over 657,000 vehicles, setting a new record in its second-largest market, China.
Recently, Tesla saw a decline in global deliveries, but in December alone, the company sold 83,000 vehicles in China, a 12.8% rise compared to the previous month.
With China accounting for 36.7% of Tesla’s total deliveries in 2024, the market is standing resilient even though competition keeps increasing from local players like BYD and global economic stresses.
However, while domestic sales in China surged, exports from Tesla’s Shanghai factory declined by 24%, resulting in a 3.3% decrease in overall sales of China-made Model 3 and Model Y vehicles. The factory, once a cornerstone of Tesla’s global supply chain, saw its weakest export performance since 2021.
Globally, Tesla’s deliveries fell by 1.1% in 2024, the first decline in the company’s history. Factors such as reduced subsidies in Europe, a shift towards lower-cost hybrid vehicles in the U.S., and higher competition contributed to the decline.
Again, the European Union’s imposition of a 7.8% tariff on Tesla cars manufactured in China compounded challenges for the automaker’s European operations.
Analysts attribute Tesla’s success in China to the country’s EV market, which accounted for 70% of global EV and hybrid sales in the first 11 months of 2024. According to industry data, over 90% of the global increase in EV sales during the year originated from China.
John Zeng, a market forecaster at GlobalData, noted that China remains the sole major market experiencing growth in EV sales, contrasting with declines or stagnation in other regions.
While Tesla maintained its top position in EV sales with 1.79 million deliveries, it faced competition from BYD. The Chinese automaker achieved a 12.1% growth in EV sales, delivering 1.76 million vehicles globally.
BYD also made strides in international markets, with overseas shipments increasing by 71.9% to over 417,000 units, though it fell short of its export target of 450,000 vehicles.
Tesla and BYD continued their rivalry in China’s increasingly competitive EV market. Tesla extended financial incentives for its popular Model Y and Model 3 cars, including zero-interest financing and cash discounts, as part of efforts to sustain demand.
Meanwhile, BYD bolstered its market position with its Dynasty and Ocean series, which have driven significant sales growth domestically and abroad.
