Tesla Inc. (TSLA, Financial) announced a 4.3% year-over -year decline in November China-made EV sales to 78,856 units, as reported by CPCA. However, its Model 3 and Model Y vehicle sales increased by 15.5% compared to the previous month.
The Chinese competitor BYD also demonstrated the highest result. The number of new passenger cars increased 2.6 times year-on-year and amounted to 504,003 vehicles in November. Currently, BYD uses two separate brands, Dynasty and Ocean, for electric vehicles and plug-in hybrid vehicles.
To cope with this competitive challenge, Tesla has moved this year to extend the incentives offered to buyers in China and also provide ¥10,000($1,376) of financing rebate over Model Y loans and zero-interest loans for Model 3 and Model Y cars until December. This is the fifth time in a row that the lifting has been Extended since July.
As the competition heats up, led by BYD's powering through with the cost-cutting strategy, Tesla's China EV market share shrunk to 6% in October, as low as it can get in a year. The market share decline points to increasing headwinds for General Motors, the US automaker, in the world's biggest electric vehicle market.
