Facing challenges like being outsold by BYD in New Energy Vehicle (NEV) sales and significant layoffs, Tesla has now been overtaken by another Chinese competitor in the Chinese market in the first quarter, according to recent data.
Meanwhile, after Tesla's global announcement of layoffs of around 10% of its total employees, sources said that the job cuts in China might be even larger and could impact its Shanghai factory. Layoff rates within Tesla in China differ by department, ranging from 30-40% to as much as 50%. Employees at Tesla's Shanghai factory have allegedly received emails about these job cuts and terminations.
Sources said that Tesla's relatively larger layoff in China compared to overseas may be attributed to its sharp decline in sales in the market recently According to the latest data from the China Passenger Car Association (CPCA), Tesla's production and sales in China have dropped for two consecutive quarters year-over-year, indicating intense competition from local brands.
According to CPCA, BYD continues to lead the NEV market in China with a 15.2% year-on-year growth rate, selling over 586,000 cars in the first quarter. Geely, Tesla, and Changan Automobile sold about 137,000, 132,000, and 126,000 vehicles. It is worth noting that Geely saw vehicle sales grow 143% year-on-year, overtaking Tesla to become the second-largest NEV brand in China.
The development came after BYD surpassed Tesla in the fourth quarter of 2023 in the global Battery Electric Vehicle (BEV) market, with 526,000 vehicles sold compared to Tesla's 485,000, and the latest data highlights the fierce competition Tesla faces from local brands in China.
NEV retail sales in China (unit) | ||||
Brand | 1Q24 | 1Q23 | YoY (%) | Share in 1Q24 (%) |
BYD | 586,006 | 508,706 | 15.2 | 33.1 |
Geely | 137,452 | 56,510 | 143.2 | 7.8 |
Tesla | 132,420 | 137,429 | -3.6 | 7.5 |
Changan Autmobile | 126,847 | 60,674 | 109.1 | 7.2 |
SAIC-GM-Wuling Automobile | 105,081 | 77,701 | 35.2 | 5.9 |
Seres | 82,447 | 11,769 | 600.5 | 4.7 |
Li Auto | 80,400 | 52,584 | 52.9 | 4.5 |
GAC Aion | 65,012 | 78,308 | -17.0 | 3.7 |
Great Wall Motor | 54,337 | 20,936 | 159.5 | 3.1 |
Cherry Automobile | 35,269 | 16,125 | 118.7 | 2.0 |
Source: CPCA, April 2024
Article translated by Jingyue Hsiao
