Tesla’s Model Y dominates the Chinese market and leads global sales in the first quarter
China was the largest market for Tesla’s Model Y electric utility vehicle, making it the world’s best-selling vehicle in the first quarter of this year, according to data shared by market research firm Jato with Reuters.
Elon Musk visited China on Tuesday for the first time in three years, emphasizing the importance of the world’s largest electricity market.
Tesla sold 267,171 Model Ys in the first quarter of this year, of which 94,469 were sold in China, compared to 83,664 in the US and 71,114 in Europe. Overall, Tesla’s biggest market has been the United States, which does not offer its global sales regionally.
The Model Y ranked first in global sales, followed by the Toyota Corolla, Toyota Hilux, Toyota RAV4 and Toyota Camry, according to the data. Model Y is the only electric car on the list.
Musk recently told CNBC that rising tensions between China and the United States “should be everyone’s concern.” Tesla also recently discussed with the Indian authorities about building a new factory in India.
Felipe Munoz, chief analyst at JATO, expects the Model Y to be the world’s best-selling model by the end of 2023, as price cuts allow the model to access the general incentives for electric vehicles.
He said Tesla’s new plants in Texas and Berlin, ramping up production and easing supply chain problems, as well as growing demand for electric vehicles in developed economies, should also boost Model Y sales.
Unlike many automakers, Tesla has a limited number of models and their variants, which helped the Model Y become a best-seller.
Tesla is concerned that it is relying too much on just two models, the Model Y and the Model 3, said Barclays analyst Dan Levy, adding that Tesla may need more models and variants to expand its market.
Tesla has been cutting prices aggressively this year, underscoring fierce competition, especially in the SUV segment, where Tesla’s aging Model Y faces many new competitors, according to Ford CEO Jim Farley.
