BYD rose 61%in July sales to lead over Tesla China-made Green cars

China Passenger Car Association،CPCA، states that China's BYD posted with its Dynasty and Ocean series of Green cars، EVs and petrol-electric hybrid vehicles، a 61% year-on-year rise in July sales to 261 thousand and 105 passenger vehicles، including 18 thousand and 169 units which were exported، meanwhile، sales of Tesla's China-made vehicles fell 31% in July from June، marking its first month-on-month decline since last December، when it struggled with rising inventories.

China's BYD extended its lead over Tesla

Reuters said that China's BYD extended its lead over Tesla in China-made electric vehicles sales in July، industry data showed، as customers snapped up its lower-priced Green cars and its U.S. rival idled some production to prepare for a revamped Model 3 launch، according to data from China Passenger Car Association، CPCA، showed on Thursday.

Sales of Tesla's China-made vehicles fell 31% in July from June، to be second to China's BYD، data from China Passenger Car Association، CPCA، showed to 64 thousand and 285 Green cars in July، up 128% from 28 thousand and 217 EVs a year earlier when a scheduled upgrade to its Shanghai factory curbed production.

Green cars produced in China estimated to reach 750 thousand

China Passenger Car Association،CPCA، is set to publish full data for July later this month، with sales of new energy passenger vehicles، Green cars produced by many companies such as China's BYD and American Tesla، in China estimated to reach 750 thousand EVs as it has been a tradition for Tesla to upgrade production lines during the heat of summer.

Tesla has prioritised sales growth over profit this year، firming its popularity in China، the world's largest auto market even though Chinese brands for the first time took more than 50% of their home market in sales terms in the first half، said China Passenger Car Association،CPCA.

Tesla slashed Green cars prices at the start of the year

The American company، Tesla which produces Green cars، slashed prices at the start of the year، initiating a price war that has drawn in more than 40 brands in China and offered new cash bonuses on top-selling models in China in July، as part of a global customer referral incentive، kicking off a new round of price cuts as American General Motors and German Volkswagen followed.

Tesla was the only foreign brand to increase its market share in China in the first half of the current year and its second quarter China deliveries hit a record 156 thousand and 676 green cars، as data from China Passenger Car Association، CPCA، showed.

BYD outsold Tesla China by 29% in Green cars sales

However، BYD outsold Tesla China by 29% in Green cars sales in the first half while its lower-priced Dolphin EV outsold Tesla's Model 3، which is expected to be revamped in September.

China Passenger Car Association، CPCA، affirmed that Chinese green cars and EV startups such as Nio and Xpeng also saw their deliveries rebound in July as they ramped up deliveries of newly launched SUV models ES6 and G6، as the chinese government wants to boost sales of cars and other big-ticket items as its post-COVID-19 economic recovery has lost steam.

China unveiled measures to increase automobile sales last month

Authorities unveiled measures to increase automobile sales last month، in June، they said an extension of a purchase tax break on new energy vehicles including green cars until 2027.

Therefore، foreign automakers in China، think it is time to double down on a turnaround or cut losses after ceding their leadership of the world's biggest auto market to local، upstart brands and announcements from some of the world's largest automakers in recent days show they are taking a divergent path: some German brands and General Motors are betting on new green cars and electric vehicles، while the Japanese Toyota Co.، and others have shifted to cost-cutting mode.

Chinese brands are market leaders، for the first time، taking a 53% share in the first half of 2023، and global automakers، who for years have dominated the market along with their Chinese state-run partners، have been slow to pivot to the fast-growing market for EVs with competitive offerings of Green cars.