According to data from the China Passenger Car Association (CPCA), as the competition for market share intensifies, American manufacturer Tesla and its main Chinese rival BYD both had record deliveries of their China-made vehicles in the second quarter.

In June, Tesla sold 93,680 electric cars (EVs) built in China, an increase of 18.72% from the same month in 2017. At the time, 78,906 Model 3 and Model Y automobiles were delivered from Tesla’s Shanghai facility after the city’s two-month COVID-19 lockdown was lifted.

The statistics also revealed that the American manufacturer sold the most vehicles built in China between April and June of 2020 since it began shipping vehicles from Shanghai. For the second quarter, Tesla claimed record deliveries of 466,140 vehicles worldwide.

According to CPCA data, sales of Chinese rival BYD’s Dynasty and Ocean series of electric vehicles and gasoline-electric hybrids increased 88.16% year over year in June to 251,685 vehicles.

The data revealed that between April and June, BYD delivered 700,244 vehicles, marking the first time the company’s monthly sales exceeded 250,000 units.

Total new energy passenger car sales, including pure electric and plug-in hybrid vehicles, were projected by CPCA to have reached 740,000 units in June, up 30% from a year earlier. These sales included both domestic and export sales. Exports and domestic sales were not broken out separately.

The firms’ increase in sales show how, so far, they have been able to keep ahead of their rivals even while total auto sales in China decline as a result of a deteriorating economy.

In an effort to increase sales, Tesla cut the prices of its two outdated models at the beginning of the year. This sparked a pricing war that led rivals, such as BYD, to decrease their prices or introduce new, more affordable models.

The Chinese government is also providing further support for the EV industry because it wants to boost sales and support a shaky economic recovery.

Beijing promised tax discounts on the purchase of new-energy vehicles totaling 520 billion yuan ($71.67 billion) through the end of 2027 in June.

However, limits on the tax exemption may help boost sales of less expensive models made mostly by domestic companies rather than expensive automobiles from foreign manufacturers, according to analysts.

(Adapted from MarketScreener.com)