Tesla’s sales in China rebounded strongly in June 2025, with the Model Y becoming the best-selling vehicle in the country and overall retail sales reaching 61,484 units, according to new data from the China Passenger Car Association (CPCA).
The surge marked a 3% year-over-year increase and the second-highest monthly result of the year, behind only March.
Model Y Tops the Charts Again
The Model Y led the charge, becoming the best-selling car in China for the month of June. This follows a common trend in the country, where Tesla’s domestic deliveries peak at the end of each quarter, as Giga Shanghai prioritizes exports early in the quarter and shifts focus to local deliveries in the final month.
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Model Y wholesale sales, including exports, totaled 51,253 units, a 16.6% increase year-over-year and a 29.7% gain from May. In contrast, the Model 3 continued to underperform, with wholesale sales falling to 20,346 units, down 24.8% from last year and 8.1% from May.
BEV Market Share Rebounds, But YTD Sales Still Down
In China’s growing battery electric vehicle (BEV) segment, Tesla captured 9.3% market share in June, according to data from CNEvPost, slightly recovering from May but still down from 12.02% in June 2024. BEV penetration in China rose to 31.7% of all new vehicle sales last month, reflecting continued strength in the country’s electric vehicle transition.
Year-to-date, Tesla’s retail sales in China total 263,410 units, down 6% compared to the same period in 2024. So far in 2025, Tesla has sold just over 40% of its full-year 2024 total, suggesting a slower ramp unless volumes accelerate in the second half of the year.
Total Deliveries and Export Slump
Including exports, Tesla’s total China-made vehicle sales in June reached 71,599 units, up 0.83% year-over-year and 16.1% month-over-month. However, exports from Giga Shanghai dropped to 10,115 units, down 56.2% from May and 13.9% year-over-year. Total exports in the first half of 2025 fell 31.9%, to 101,064 units.
Second Quarter Summary
Tesla’s Q2 retail sales in China hit 128,803 units, down 11.7% year-over-year, ending a streak of quarterly growth. The region accounted for 33.5% of Tesla’s global Q2 deliveries, the lowest share in a year.
While Tesla’s June recovery and strong Model Y performance highlight the brand’s staying power, the year-to-date shortfall and market share erosion indicate sustained competitive pressure from domestic automakers like BYD, Li Auto, and Xiaomi, which just launched the YU7 as a direct, and attractive, competitor to the Model Y, accumulating over 200,000 orders in just 3 minutes. The company’s ability to sustain momentum in Q3 and beyond may hinge on pricing, refresh cycles, and broader market dynamics.
