Decline in July sales of Tesla's electric vehicles produced in China by 8.4%
In the heart of 2025, Tesla's deliveries of the Model 3 and Model Y in China have shown a mix of positive and negative trends.
Last month, Tesla sold approximately 71,599 units in China, a slight 0.8% year-on-year increase and a strong 16.1% rise compared to May. This break in the downward sales trend is a welcome sign for the electric vehicle (EV) giant [3]. However, the overall first half of 2025 reflected a 14.6% year-on-year decline, with total sales of roughly 364,474 units [3].
For individual models, the Model 3's retail sales in China increased by 30.38% year-on-year in the first six months of 2025, with 91,919 units sold [1]. On the other hand, the Model Y experienced a 17.48% decline over the same period, with 171,491 units sold [1]. However, the Model Y showed signs of recovery in June, rising by 9.09% year-on-year [1].
July sales in China stood at about 67,886 units, marking an 8.41% year-on-year decrease [4]. The total year-to-date sales, including exports, reached 432,360 units, down 13.66% compared to the previous year [4].
The Tesla Shanghai factory serves both the local Chinese market and exports, although specific export figures for recent months are unavailable [4]. Tesla aims to boost Model Y appeal with a new six-seat Model Y L variant launching in China later in 2025 [4].
Compared to Chinese rival BYD, which remains China's top EV maker, Tesla's sales faced year-on-year declines and volatility in 2025. BYD, on the other hand, has continued to grow consistently, maintaining its leadership in the Chinese EV market. BYD's strong domestic focus, wide model range, and local consumer preference have contributed to its outperformance relative to Tesla in China this year.
| Aspect | Tesla Model 3 | Tesla Model Y | Tesla Overall China Sales | BYD (Top Rival) | |----------------------|------------------------|------------------------|---------------------------------|------------------------| | H1 2025 Retail Sales | +30.38% YoY (91,919) | -17.48% YoY (171,491) | -14.6% YoY including exports | Continued growth and market leadership | | June 2025 Sales | Combined 71,599 units (Model 3 + Model Y) with slight YoY gain | Model Y specifically +9.09% YoY | 0.8% YoY growth in June after declines | Strong and stable performance | | July 2025 Sales | Not specified | Not specified | 67,886 units, down 8.41% YoY | Leading market volume | | Export Status | Production hub in Shanghai exporting worldwide | Same | Export part of total sales but details scarce | Primarily domestic focus | | New Variants | - | Six-seat Model Y L launching fall 2025 | - | Diverse offerings |
Tesla's China deliveries, especially the Model 3, have shown resilience, but the Model Y and total volumes have declined year-to-year amid strong competition and market dynamics favoring BYD and other domestic manufacturers.
In the dynamic Chinese business environment, Tesla's resilient Model 3 deliveries contrast with the declining Model Y and total volumes, reflecting the challenging competition in the finance sector of the technology industry. Simultaneously, Tesla's top rival, BYD, continues to thrive, capitalizing on a strong domestic focus and diverse offerings in the Chinese EV market.
