Data from China Merchants Bank International (CMBI) has suggested that Tesla saw a significant increase in retail sales in China recently. The boost in sales can be attributed to price cuts on the Model 3 sedan and Model Y crossover that were implemented earlier this month.
Tesla saw an increase in sales in China during the second week of January, spanning the 9th to the 15th. The bank’s data suggests that the average daily sales for the period were 76% higher than the same period in 2022. Overall, CMBI estimates that a total of 12,654 vehicles were sold over the period.
Tesla’s performance bodes well for its recovery as one of China’s most notable electric vehicle makers, especially considering the rise of the BEV and hybrid market in China. As noted in a report from Reuters, electric and hybrid vehicle sales in the country rose 36.5% in the same week that overall retail auto sales in the country dropped 14.5% year-over-year.
Tesla China has not issued a comment about CMBI’s recent data on its sales. However, company executives have previously noted that Tesla’s price adjustments were not really a response to the performance of other automakers in the Chinese market. Thus, following the recent price adjustments, Tesla China’s vehicle costs could very well become quite stable.
“In the past, Tesla has made several larger price adjustments due to external factors that have had an impact on costs. For example, when we became a domestic car(maker), the price naturally decreased compared to a pure import, at least the tariff was saved by 15%.
“For example, after our supply chain stabilized, it would definitely be lower than before when it was shipped from abroad. Tesla’s supply chain localization rate is now 95%, so theoretically, there is not much room for improvement. Therefore, I think after this price adjustment, the price should be relatively stable,” Tesla VP Grace Tao said.