Sales of electric cars have fallen in China. Although the loss is not as high as that of pure combustion vehicles, the decline in the market is producing very bad results for Tesla. And Elon Musk’s company has brought out one of its traditional tools to boost sales again.
An obvious fall. Sales of electric cars in China are not reaping the best results although, everything must be said, recent weeks are beginning to give some hope to companies.
At the moment, if global sales are not suffering a setback it is because the accelerator has been put into exportswith record numbers and growth of more than 70% compared to last year. But in the domestic market, sales of “new energy” cars (plug-in hybrids and electric) have fallen 21%reaching 2.92 million cars sold compared to 3.66 million last year.
In recent weeks, the Hormuz crisis has served to begin to ground the decline of this type of car. Without state aidits sales had fallen but in recent days we have seen how the savings compared to gasoline have turned the situation around, to the point of break record in plug-in penetrations in the market.
Damaged. The context so far this year has not been easy for brands that only sell plug-in vehicles. Much less, therefore, to those who only sell electric vehicles, like Tesla. Without state aid at the beginning of the year and a Chinese New Year longer than usual, sales of this technology fell in a market accustomed to growing year after year.
This situation rewarded those who have the most diversified business. In January and FebruaryGeely, which has a portfolio where electric, plug-in hybrids and pure combustion cars are intertwined managed to surpass BYD whose leadership seemed untouchable.
Tesla has been through a similar situation. So far this year, Its sales from January to April 2026 have fallen by 15%. It is a bad figure considering all the difficulties the company went through last year. This has led it to lose more market share and remain at just over 3%.
Interests. Among the sales of its cars in China, The company has a huge dependence on the Model Ywhich represents around 75% of sales so far this year. But in April, where the Model 3 had a year-on-year drop of 66.09%, the sedan barely accounted for 11% of sales.
The fastest solution has been through an old tool: loans. The company has an active campaign in China to defer payments for its cars at 0.99% interest in the case of the Model 3 and 0.92% in the Model Y. The idea is simple, aiming to reward the customer in the long term because it is increasingly difficult for them to compete at the starting price.
Right now, in Spain it gives loans above 3% which, however, remains relatively low for our country’s market. However, the company has been offering similar loans before and, right now, In Germany a 0% interest offer is available.
Other solutions. Very low interest loans are not Tesla’s only move in China. Aware that the Model 3 has little sales at the moment, GigaShanghai’s exports have skyrocketed so far this year. So much so that global sales, internal sales and those outside Chinese borders, they have grown 36% last April.
This means that, clearly, Tesla is trying to move the focus of its target audience. The company has encountered the problem that in China the customer has turned to the local product that usually offers more for less money. The solution is to push the European market, which is now receiving the first units of the Basic Tesla Model 3.
less margin. The problem for the company is that it can no longer push the price as hard as before. Before the massive embrace of the Chinese car in its local market and new models began to arrive in the European market, Tesla played as it wanted with demand rising and falling prices.
Today those days are over and, what is worse for the company, Your profit margins cannot respond as before. As the price has fallen, the margin has narrowed, losing ability to continue moving in the market. This explains why the voices calling for smaller and more affordable versions of their cars are heard louder. A ship that, given what has been seen, Elon Musk’s company has not been able to bring to fruition.
Photo | Priscilla Du Preez and Sou Jest
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