China is a major market for many automakers in the world but it is more than just special for Tesla.
The Chinese market is helping Tesla’s rise and underlining its dominance in the electric vehicle (EV) segment. The figures from June sales clearly reveal about the flourishing of the American automaker in the country.
Model 3, Tesla’s most affordable car, has beaten local EV rivals in June sales and 14,954 units were sold. According to the data from China Passenger Car Association (CPCA), this was an increase of 35% over sales figures from May. The next several EVs in the sales chart included GAC Aion S, Buick Velite 6, BYD Qin Pro EV, NIO ES6, and BMW 530Le. Surprisingly, no foreign automaker, except Tesla and BMW, managed to break into the top-15. Volkswagen Passat PHEV was ranked 18th with 925 units sold.
The June figures were still shy of earlier highs in the Chinese EV space. Model 3, however, was a distant first due to the next EV in the sales chart – Aion S – had just 3,892 units being sold.
Tesla’s success in China can be attributed to multiple reasons. The first assembly plant of the automaker outside the US started last year in Shanghai. Model 3 is the focus product here. Tesla also recently decreased Model 3 prices so that it remains qualified for the new subsidy rules announced in the country. Ultimately there is the cult following which the Tesla brand enjoys and it makes it a status buy. There are reports of the automaker’s showrooms throughout China being aggressive in their sales pitch to woo consumers.
Tesla’s profits in China are expected to only increase in the coming months and the country is likely to further encourage the company’s forward momentum.
Despite the recent decline in sales due to coronavirus crisis, China still remains the world’s largest car market and the world’s largest EV market.