U.S. electric vehicle giant Tesla (NASDAQ:TSLA) saw a decline in sales of its China-made electric cars, with deliveries falling 11.5% year-over-year in January, according to data from the China Passenger Car Association (CPCA) released on Friday.
Tesla sold 63,238 units of its Shanghai-manufactured Model 3 and Model Y vehicles last month, marking a 32.6% drop from December, as demand in the world’s largest EV market showed signs of fluctuation.
Meanwhile, Chinese automaker BYD continued to solidify its dominance in the sector.
The company, known for its Dynasty and Ocean series of electric and plug-in hybrid vehicles, reported 296,446 passenger vehicle sales in January, reflecting a 47.5% increase from a year earlier.
However, on a month-over-month basis, BYD’s sales declined 41.8%.
The latest figures highlight the intensifying competition in China’s EV market, with domestic brands gaining traction as they expand their model offerings and leverage government incentives.