Tesla’s China sales drop 8.4% in July amid intensifying EV price war
Tesla’s China-made EV sales fell 8.4% in July amid rising competition and a fierce price war. Sluggish demand, delayed launches, and growing pressure from BYD continue to challenge its momentum.
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Tesla’s momentum in China took a hit in July, with sales of its locally made Model 3 and Model Y dropping 8.4% year-on-year to 67,886 units, according to the China Passenger Car Association. The decline also marks a 5.2% dip from June, reversing the modest 0.8% growth seen that month and reaffirming broader concerns about sustained weakness in demand.
The slowdown comes amid intensifying competition in the world’s largest EV market, where Chinese players like BYD continue to flood the market with aggressively priced electric and hybrid models. BYD’s global sales in July held steady at 341,300 units, as it leverages its Ocean and Dynasty series to maintain pressure on rivals.
Tesla’s struggles in China mirror its global challenges. The company posted its steepest quarterly sales decline in over a decade in Q2, amid weak EV demand, rising geopolitical tensions, and consumer backlash linked to CEO Elon Musk’s public stances.
Looking to pivot, Tesla is banking on future innovations — including robotaxis, humanoid robots, and a more affordable version of its best-selling Model Y. However, sources indicate that the launch of the budget-friendly variant may face delays.
To regain ground in China, Tesla is preparing to introduce a longer-wheelbase, six-seater Model Y and a longer-range, rear-wheel-drive Model 3 — offerings aimed at refreshing consumer interest as the price war shows no signs of easing.
