Tesla China Deliveries Fall as Local EV Makers Gain Ground
- tech360.tv
- Aug 6, 2025
- 2 min read
Tesla’s vehicle deliveries from its Shanghai Gigafactory fell in July, as Chinese consumers increasingly turned to more affordable domestic electric vehicles.
The factory delivered 67,886 Model 3 and Model Y units to customers in China and overseas, down 8.4% from July 2023 and 5.2% from June, according to the China Passenger Car Association (CPCA).
The decline follows a brief rebound in June that ended an eight-month slump in deliveries.
Between January and July, Tesla’s Shanghai plant delivered 432,360 vehicles, a 13.7% drop year on year. The figure includes both domestic sales and exports.
Tesla’s market share in China’s electric vehicle sector fell to 3.8% in June, down from 6.9% a year earlier. In 2020, the company held 16% of the market when the Shanghai factory opened.
Tian Maowei, sales manager at Yiyou Auto Service in Shanghai, said Chinese buyers are increasingly opting for cheaper, locally developed EVs to save money.
China’s EV sales rose 35% to 7.6 million units in the first seven months of 2025, according to the CPCA.
Domestic brands such as Leapmotor and Xpeng posted record-breaking sales in July. Leapmotor, backed by Stellantis, sold 50,129 vehicles, up 4.4% from June. Xpeng delivered 36,717 units, a 6.1% increase from June and a 229% surge year on year.
Xpeng’s Mona 03 sedan starts at 119,800 yuan (USD 16,670), about half the price of Tesla’s Model 3, which starts at 235,500 yuan (USD 32,770). The Shanghai-made Model Y starts at 263,500 yuan (USD 36,670).
Tesla is preparing to launch refreshed versions of the Model 3 and Model Y to regain market share. The new Model 3 variant, with an 800km range, is expected to debut in China next month.
The Shanghai plant will also begin production of a six-seat SUV, the Model Y L, this autumn. The vehicle will be nearly 5 metres long with a 3.04-metre wheelbase, slightly larger than the standard Model Y, according to the Ministry of Industry and Information Technology.
Prices for the new Tesla models have not yet been announced.
Meanwhile, local competitors continue to expand their premium offerings. Li Auto recently unveiled its Li i8, a six-seat electric SUV priced from 321,800 yuan (USD 44,760). Nio followed with the launch of its Onvo L90 SUV, starting at 265,800 yuan (USD 36,960).
Tesla’s Shanghai deliveries fell 8.4% year on year in July
Market share in China dropped to 3.8% from 6.9%
Domestic EV makers Leapmotor and Xpeng posted record sales
Source: SCMP
