According to data released by the China Passenger Car Association (CPCA) on Thursday, Tesla (NASDAQ:TSLA) sold 64,285 Chinese electric vehicles in July, a 31% decrease from a month earlier.
However, sales of China-made Model 3 and Model Y cars have surged by 128%, reaching 28,217 units, compared to the same period last year. The increase in sales can be attributed to a scheduled upgrade at Tesla's Shanghai factory, which boosted production capacity.
In July, BYD (OTC:BYDDY) reported a 61% year-on-year increase in sales for its passenger vehicles, which include the Dynasty and Ocean series of electric vehicles (EVs) as well as petrol-electric hybrid vehicles. The total number of passenger vehicles sold reached 261,105 units, 18,169 of which were exported.
This year, Tesla has placed a higher emphasis on sales growth rather than focusing solely on profits. Despite Chinese brands capturing over 50% of their domestic market in terms of sales during the first half, Tesla's commitment to expanding its sales has boosted its popularity in the world's largest auto market.
China aims to revitalize the sales of cars and other high-value products due to a slowdown in its economic recovery following the COVID-19 pandemic. To achieve this goal, authorities have recently introduced strategies to promote automobile sales. Notably, in June, they disclosed their plans to prolong the purchase tax incentives for new energy vehicles until 2027.
Shares of TSLA are down 0.49% in pre-market trading on Thursday.