Tesla has kicked off 2025 in China with a dip in sales. However, the numbers were still fairly strong when you consider the automaker had to deal with the typical slowdown during the Lunar New Year holiday, as well as handling the changeover in production and launch of sales of the new Model Y.
According to data released by the China Passenger Car Association (CPCA) on Friday, Tesla’s China-made vehicle sales fell to 63,238 units in January 2025, an 11.5% decline year-over-year (YoY) and a 32.6% drop from December 2024. These figures include vehicles that were sold domestically in China, and those exported to other markets. A breakdown of those figures should be released next week.
*wholesale = 63,238 pic.twitter.com/v6BHsbUYOF
— Tsla Chan (@Tslachan) February 7, 2025
The Lunar New Year, China’s biggest annual holiday, fell on January 28 to February 4, 2025, causing a slowdown in both production and deliveries. Historically, the holiday leads to weaker sales in the general auto market, as businesses close and consumer activity slows down, and Tesla was not immune to this trend, with factory operations at Giga Shanghai also temporarily scaled back during the holiday period.
Another factor weighing on Tesla’s sales in January was the ongoing Model Y refresh at Giga Shanghai. The company is upgrading its production lines to accommodate the revamped Model Y, which was unveiled in early January 2025. Reports suggest Tesla partially suspended Model Y production from January 22 to February 14 to optimize assembly lines for the refreshed version, which has generated strong initial demand.
With this transition period there were fewer Model Ys were available for delivery in January.
To address slowing sales momentum, Tesla recently introduced an insurance subsidy of ¥8,000 (C$1,570/US$1,100) for the Model 3, as well as extending their 0% interest financing offer.
Tesla’s February sales are expected to remain subdued due to continued Lunar New Year effects and the Model Y production transition. However, once production ramps up in March and April, deliveries should rebound, particularly as export volumes pick up.
