China’s Tesla sales soar to record high in 2024, offsetting global decline By Reuters

BEIJING (Reuters) – U.S. electric car maker Tesla (NASDAQ: ) said on Friday that its China sales rose 8.8% to a record high of more than 657,000 vehicles by 2024, a performance that strength in the competitive market annually in its annual worldwide distribution. of the first time.

Tesla sales in the world’s largest auto market also rose 12.8% in December from a month earlier to a record high of 83,000 units, according to Tesla China.

By 2024, Tesla delivered 36.7% of its vehicles to customers in China, its second-largest market, according to sales figures.

But global output fell by 1.1%, despite CEO Elon Musk’s earlier prediction of less growth. Reduced European subsidies, the US shift to low-cost hybrids and strong global competition, particularly from China’s BYD (SZ: ), have been a major blow.

With full-year sales of 1.79 million vehicles, Tesla was still ahead of BYD, whose EV sales grew 12.1% to 1.76 million vehicles worldwide.

The US EV giant cut its global workforce last year due to strong demand and fierce competition from Chinese EV makers, and reduced the size of its China sales team.

As the EV price war in China enters its third year, Tesla has added a 10,000 yuan ($1,369.99) discount on outstanding loans for its best-selling Model Y as well as an interest charge of up to five years for Model 3 and Model. Y cars until the end of this month.

BYD, which has led the cost-cutting competition with its Dynasty and Ocean series of EVs and plug-in hybrids, exceeded its sales target, with passenger car sales up 41% to -more than 4.25 million units last year.

The Chinese EV champion’s overseas sales rose 71.9% to 417,204 units, or 9.8% of its global sales, missing its export target of 450,000 for 2024 , as it faces additional tariffs of 17%, the lowest the EU has distributed Chinese EVs from China.

About one in five BYD cars sold in China was in Brazil, where BYD and its contractor Jinjiang Group are facing an investigation by Brazilian authorities over the conditions of Chinese workers at a construction site. local BYD factory.