Tesla reported a record year in China with sales exceeding 657,000 vehicles in 2024, representing an 8.8% increase compared to the previous year. Despite this strong performance in the world’s largest auto market, global Tesla deliveries fell for the first time, falling 1.1% year-on-year to 1.79 million vehicles.
China accounted for 36.7% of Tesla’s global sales in 2024, which confirms the region’s importance to the company’s growth. In December alone, Tesla delivered 83,000 vehicles in China, a monthly increase of 12.8%, according to Tesla China.
John Zeng, head of market forecasting for China at GlobalData, highlighted China’s unique position as a growth leader in the global electric vehicle sector. He stated that “China accounted for 70% of global electric and hybrid vehicle sales in the first 11 months of 2024,” noting its significant contribution to the growth of global sales.
However, Tesla has faced stiff competition from Chinese automakers such as BYD, whose global electric vehicle sales rose 12.1% to 1.76 million units in 2024. BYD’s passenger vehicle sales jumped 41% to more than 4.25 million units, putting Strengthen its dominance in the Chinese market and expand its presence. outside.
Tesla has responded to China’s competitive electric vehicle market by offering incentives such as 10,000 yen ($1,370) discounts on Model Y loans and interest-free financing for certain models, aiming to maintain momentum as the price war enters its third year.
Meanwhile, BYD has faced challenges abroad, failing to meet its export target of 450,000 units and facing scrutiny in Brazil over working conditions at its factory construction site.
As Tesla navigates a global landscape of dwindling subsidies, rising competition, and evolving consumer preferences, its record-breaking performance in China underscores the region’s critical role in its strategic outlook.