Tesla’s sales in China decreased by 11.5% year-on-year in January 2025, selling 63,238 units compared to 71,447 in January 2024.

This decline occurs amid increasing market competition as domestic manufacturers gain market share.

In contrast, Chinese EV manufacturer BYD reported a 47% increase in sales, delivering 296,446 electric and plug-in hybrid vehicles.

Other domestic companies, like Changan Automobile and Xpeng, also saw growth.

To stay competitive, Tesla reduced Model Y prices and extended a zero-interest, five-year loan plan. It also launched a revamped version of the Model Y with financing incentives.

However, the company has not introduced a new mass-market model since the Cybertruck in late 2023, though an affordable model may arrive in early 2025.

Tesla also plans to launch its full self-driving system in China this year, keeping up with local rivals.

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