China-made Tesla Model Y takes off despite plummeting holiday car sales

BEIJING – Tesla’s Model Y is off to a good start in China, less than three months since deliveries began.

The midsize SUV was the third best-selling electric car in February with 4,630 vehicles, according to data released Wednesday by the China Passenger Car Association. Taking January into account, the data showed the car was the ninth bestseller among new energy vehicles, a category that includes electric cars.

Tesla announced on New Years Day that its Chinese-made Model Y would start deliveries at a price that Chinese media said was 30% cheaper than previously announced.

The Model Y was popular even though car sales typically plummet during the weeklong Lunar New Year holiday in February this year.

Nationwide passenger car sales fell 45.5% in February from January, according to the association. For the first two months of the year, these data showed that nearly 3.34 million passenger cars were sold in China, with new energy vehicles accounting for 7.5%.

Chinese electric car start-ups Xpeng and Li Auto both reported a sharp drop in February deliveries to just over 2,000 vehicles each and weak guidance for the first quarter. Rival Nio led the group with around twice February deliveries and a much higher forecast for the quarter.

The vehicles of the three Chinese start-ups rank among the top 15 new-energy cars sold in China in the first two months of the year, according to data from the Passenger Car Association.

But start-ups are still lagging behind major automakers in the Chinese electric vehicle market.

The top spot went to the Hongguang Mini, a low-cost miniature electric car developed by General Motors’ joint venture with Wuling Motors and state-owned SAIC Motor.

Tesla’s Model 3 sedan, which was China’s best-selling electric car last year, placed second for February and the first two months of the year, according to association data.

In third place for January and February combined was BYD’s Han luxury sedan, according to the data. The vehicle, which comes in pure electric and hybrid models, has grown in popularity since its launch last summer.

Due to the use of self-reporting, some players in the Chinese auto industry have questioned the accuracy of the association’s figures.