Sales of Chinese all-electric vehicles fell 40% year-on-year to 67,000 units in June, while Tesla grew to account for 23% market share, the Chinese Passengers Car Association (CPCA) said Wednesday.

Why it matters: Tesla’s dominance in the Chinese EV market has driven its share price to record highs, and it is leading a market recovery during the post-Covid period.

Details: Tesla sold 14,954 vehicles in China in June, reporting a 35% growth month-on-month, CPCA secretary general Cui Dongshu said on an online briefing.

  • Sales of new energy vehicles (NEVs), including all-electrics, plug-in hybrids, and fuel-cell vehicles, dropped 35% to 85,600 units in June from the previous month, according to figures from CPCA (in Chinese).
  • Premium EVs, such as Nio and Lixiang, sold well across the board, amid 27% year-on-year growth for all premium autos.
  • Lower-priced EV makers such as BYD and Geely, who traditionally focus on taxi and ridesharing fleets, suffered falling sales.
  • CPCA expects a “significant rebound” in the Chinese NEV market in the coming six months, as market demand is coming back.

Context: Tesla sales in China dipped in April, with only 3,635 units delivered to customers amid allegations that the company’s salespeople cheating customers to maintain its sales rate.

  • The US EV giant has delivered a total of 45,721 vehicles in China in the first half of this year, according to CPCA figures.
  • CEO Elon Musk in late April said the Gigafactory in Shanghai will achieve a production rate of 4,000 per week, or 200,000 units per year, by mid-year, as part of an annual goal to deliver 500,000 vehicles globally.
  • The company is building phase two of the local plant in a bid to start production of Model Y electric crossover in the first quarter of 2021.
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Jill Shen

Jill Shen is Shanghai-based technology reporter. She covers Chinese mobility, autonomous vehicles, and electric cars. Connect with her via e-mail: or Twitter: @yushan_shen