Today an official from the China Passenger Car Association (CPCA) told Reuters that said Tesla sold just 211 cars in China last month. This would be a 70% drop compared to a year ago. While the 40% import tax likely hurt Tesla’s sales in China, the automaker responded that the CPCA figures are off.
“This is wildly inaccurate. While we do not disclose regional or monthly sales numbers, these figures are off by a significant margin,” said a Tesla spokesperson in response to the Reuters report about the CPCA data.
Currently, Tesla sells the Model S and Model X in China. And Tesla is planning to roll out the Model 3 in China starting in March 2019. China is Tesla’s third single largest market for vehicle sales.
To counter the 40% import duty on Chinese consumers, Tesla lowered the prices of its vehicles. And even though Tesla is cutting the prices to make its vehicles more affordable in China and is taking a hit from the higher tariffs, the company is setting up a site for an overseas factory in Shanghai to help avoid steep tariffs in the future.
Chinese media https://t.co/OWERGWdppm reported:
Tesla China will reduce the price of Model S and Model X in China from 12% to 26%
— Vincent (@vincent13031925) November 22, 2018
Once it was revealed that the prices were lowered, consumers flocked to the Tesla booth at the 2018 Guangzhou Auto Show and many of them placed orders on the spot. At the booth, Tesla was also showcasing the V9.0 software update.
According to TeslaTopInfo, Chinese auto reporter Sun Shao Jun said that the booth that had the most customers at the Guangzhou Auto Show was Tesla, which was busy from the beginning of the day until the end every day.
Tesla in GIAE. The 16th China 🇨🇳 Guangzhou International Automobile Exhibition. Sales and Demand soared.
— TeslaTopInfo (@TeslaTopInfo) November 24, 2018
Tesla attended the 16th Guangzhou International Auto Show (China🇨🇳). At this auto show, Tesla is exhibiting Model S 3 X with the latest V 9.0 upgraded system and bring huge crowds. Guangzhou is the top 3 biggest market for Tesla in China. $TSLA #Tesla #China #特斯拉 pic.twitter.com/s5OXdSClUQ
— Vincent (@vincent13031925) November 16, 2018