Tesla remained a strong contender in Beijing’s competitive electric vehicle scene, with sales of Chinese-produced electric vehicles increasing slightly in January from a year earlier amid a widespread industry slowdown.
According to data According to data released Wednesday by the China Passenger Car Association, January deliveries from Tesla’s Shanghai Gigafactory increased 9% to 69,129 units, compared with 63,238 in January 2025.
The latest deliveries in January put Tesla in third place against other Chinese electric vehicle manufacturers. BYD was in the lead with 205,518 shipments, while Geely came in second with 124,252 units, according to the CPCA.
Despite the increase in deliveries, there is little indication of real growth in demand for Tesla’s offerings in China, the world’s largest electric vehicle market.
The company’s January delivery figures reflect the total number of shipments from Tesla’s Shanghai Gigafactory, which produces the Model 3 and Model Y for domestic and overseas markets in Europe, Asia-Pacific and elsewhere.
New registrations in January for Tesla passenger vehicles – a sales indicator – slightly increased in Europe, according to Reuters.
Domestic price warTesla has faced stiff competition from a number of Chinese electric vehicle brands with more affordable offerings. In a separate reportthe CPCA noted that total sales of Tesla electric vehicles produced in China fell 4.8% in 2025 – one of only two Beijing manufacturers to report a decline in annual sales compared to the previous year.
At around 235,500 yuan ($33,943), Tesla’s base Model 3 the sedan costs almost three times the price of the base model for The seal of the worldat around 79,800 yuan.
Like other automakers, Tesla has sought to maintain its competitiveness in China through aggressive price cuts. According to his Chinese websiteTesla began offering five-year 0% interest rate loans, or seven-year “ultra-low” interest rate loans for orders placed before February 28.
“We have [had] “Very intense price wars have taken place, although the government and industry have called on automakers not to engage in aggressive pricing strategies,” Abby Tu, senior research analyst at S&P Global Mobility, told CNBC.
Despite these involutions price warsChina’s electric vehicle market has slowed significantly.
According to CPCA datasales of new energy vehicles, which include hybrid and battery-powered cars, rose just 1% year-on-year in January – a fourth straight month of slowing growth.
The slowdown is expected to continue as Beijing has reduced its support for sales of new electric vehicles. Since January 1, a 5% tax on purchases of new energy vehicles has been reinstated, after being exempt from the full 10% tax for more than a decade. New energy vehicles include battery cars and hybrid cars.
New regulationsTesla’s challenges are further compounded by a recent announcement from Beijing that will effectively ban concealed door handles.
On Monday, China’s Ministry of Industry and Information Technology announcement that from January 1, 2027, all door handles of cars sold in the country must be equipped with interior and exterior mechanical releases.
This announcement follows a series of high-profile statements incidents in the United States and China, where EV occupants involved in road accidents could not be freed after their vehicles caught fire, due to power failures in the door locking mechanisms.
While Chinese automakers have a decent runway to ensure compliance with the new regulations, it remains to be seen how Tesla will adapt, given that flush door handles were first popularized as a signature design element of Tesla’s minimalist vehicles.
Some analysts, like Tu Le, founder and chief executive of consultancy Sino Auto Insights, see China’s new restrictions on car door handles as likely to pose a “decent-sized headache” for Tesla.
However, Le said, China’s new regulations will likely have little impact on most automakers.
“I think that for many Chinese brands, this new regulation [will not] “, Le added.
CNBC’s Evelyn Cheng contributed to this report.
Correction: This copy has been updated to correctly reflect the spelling of the name of Abby Tu, senior research analyst at S&P Global Mobility.
