Tesla’s sales in China have declined recently, dropping 14% over the first two months of 2025. Meanwhile, its main Chinese competitor, BYD, saw a 75% increase over that time and secured nearly 30% of China’s EV market last month, as Tesla accounted for a roughly 4% share.
Lower prices offered by domestic brands have contributed to this shift. The average Tesla in China costs $33,500, compared to BYD’s median price of $16,700, and some models are as low as $9,700.
Chinese automakers are also advancing in AI and autonomous driving. Tesla only recently gained approval to introduce Autopilot in China.
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Tesla has been a dominant force in China’s electric vehicle (EV) market. However, the company is now experiencing a decline in sales as domestic automakers gain ground with competitive pricing and new technology.
How much have Tesla’s sales in China dropped?
In the first two months of 2025, Tesla sold 60,480 vehicles in China, a 14% drop from the same period last year.
Meanwhile, its primary Chinese competitor, BYD, saw a surge in sales, delivering 481,318 vehicles—a 75% increase over its 2024 figures. In February, BYD held nearly 30% of China’s EV market share, significantly outpacing Tesla, which accounted for just under 4%.
Why are Tesla’s sales to Chinese customers falling?
Affordability has played a key role in this shift. The average Tesla in China costs around $33,500, whereas BYD’s median price stands at $16,700. Some models, like the Seagull, are available for as little as $9,700.
What other factors are contributing to this decline?
Beyond pricing, analysts point to the rapid technological advancements made by Chinese automakers as another factor contributing to Tesla’s slowdown. Many domestic brands have integrated cutting-edge features such as autonomous driving, artificial intelligence and compatibility with smart home ecosystems.
Tesla, meanwhile, only received approval in February to introduce a version of its Autopilot technology in China. While the company remains a significant player in the market, it faces growing pressure from local competitors offering similar or more advanced features at competitive prices.
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