BTCC / BTCC Square / Global Cryptocurrency /
Tesla’s Declining Market Share in China Amid Rising Local Competition

Tesla’s Declining Market Share in China Amid Rising Local Competition

Published:
2025-07-09 05:36:02
9
2
BTCCSquare news:

Tesla's market share in China has plummeted to 4%, a stark decline from 11% in early 2021. Last month, the company sold just under 40,000 vehicles, compared to over 57,000 during the same period a year ago. Chinese automakers like BYD and Xiaomi are rapidly gaining ground, with BYD now commanding 29% of the EV and plug-in hybrid market.

Once favored by Chinese officials, Tesla enjoyed land grants, tax breaks, and the rare privilege to operate without a local partner. Now, the tide has turned. Domestic brands are outpacing Tesla with feature-rich offerings—multiple screens, in-car gaming, selfie cameras, and even fridges—features Tesla lacks. Local consumers increasingly view the brand as outdated.

Internal challenges compound Tesla's struggles. The China team has repeatedly warned headquarters about local demand for enhanced smartphone integration and native apps, only to be ignored. U.S. executives dismissed these requests, prioritizing other developments. While Tesla later added Mango TV, its app offerings remain sparse compared to rivals.

Sales personnel face mounting pressure. Targets have surged from four cars a week to one per day, with work hours extended to 12 daily. As models age and local competitors innovate, Tesla's foothold in China continues to erode.

|Square

Get the BTCC app to start your crypto journey

Get started today Scan to join our 100M+ users