Tesla Inc. (TSLA, Financial) announced a 4.3% year-over-year decline in China-made EV sales to 78,856 units in November, as reported by CPCA. However, sales of Model 3 and Model Y vehicles increased 15.5% compared to the previous month.
Chinese competitor BYD also showed the highest result. The number of new passenger cars increased 2.6 times year-on-year and reached 504,003 vehicles in November. Currently, BYD uses two separate brands, Dynasty and Ocean, for electric vehicles and plug-in hybrid vehicles.
To address this competitive challenge, Tesla took steps this year to expand incentives for buyers in China and also provide a 10,000 ($1,376) financing rebate on Model Y loans and zero-interest loans for Model 3 through December and Model Y cars. It is the fifth time in a row that the lifting has been extended since July.
As competition intensifies, led by BYD’s continued cost-cutting strategy, Tesla’s Chinese EV market share shrank to 6% in October, the lowest possible level in a year. The market share decline points to mounting headwinds for General Motors, the U.S. automaker, in the world’s largest electric vehicle market.
This article first appeared on GuruFocus.
