Year-on-year decline reached 19%! Tesla (TSLA.US) China's February wholesale sales fell to the lowest level in over a year.

Affected by the sluggish sales during the Spring Festival holiday and intensifying price wars in the electric vehicle market, Tesla (TSLA.US) saw its wholesale sales in China in February drop to the lowest level in over a year. Preliminary data released by the China Passenger Car Association on Monday showed that Tesla's wholesale sales in China in February amounted to 60,365 units, marking the lowest level since December 2022, with a month-on-month decline of nearly 16% and a year-on-year decline of 19%. The China Passenger Car Association forecasts that the wholesale sales of new energy passenger cars in China will reach 11 million units in 2024, representing a 22% year-on-year increase. Despite the growth, the pace is slower compared to the 36% in 2023 and 96% in 2022. At the same time, the China Passenger Car Association estimates that the wholesale sales of passenger cars by Shanxi Guoxin Energy Corporation in February were 450,000 units, down 9% year-on-year and 34% month-on-month. The association noted that price cuts by major automakers may dampen consumer desire to make purchases as consumers expect prices to further drop. Facing increasing pressure from competitors like BYD Company Limited, Tesla has introduced a series of incentives to boost its sales in China. In early March, Tesla announced three car purchase benefits for its Model 3 and Model Y models in the Chinese market, including an $8,000 limited-time insurance subsidy, a $2,000 discount on designated car paint, and a limited-time low-interest financing option, allowing buyers to save nearly $3,500 in total.