WionDrive News Desk 
Data released by the China Passenger Car Association (CPCA) on Tuesday revealed a 6.6% year-on-year decline in sales of Tesla’s China-made electric vehicles, totaling 72,573 units in May. This marks the second consecutive month of dwindling sales for the US automaker in the Chinese market.
The downward trend follows an 18% drop in April, which reversed a marginal 0.2% gain recorded in March. The decline in sales coincides with Tesla’s decision to reduce production of its Model Y by a double-digit percentage at its Shanghai plant since March, a move reported by Reuters towards the end of May. This production adjustment aims to address waning demand for the company’s flagship yet aging model in China.
Despite the overall decrease in sales, deliveries of China-made Model 3 and Model Y vehicles experienced a notable uptick of 16.7% compared to April figures, suggesting a mixed performance across Tesla’s product lineup.
In contrast, Chinese electric vehicle manufacturer BYD witnessed a surge in sales, with its Dynasty and Ocean series of electric vehicles and plug-in hybrids recording a robust 38.2% year-on-year increase. BYD’s success highlights the intensifying competition within the Chinese electric vehicle market, as domestic players vie for market share alongside established international brands like Tesla.
In a separate development, Tesla is likely to launch the Full Self-Driving (FSD) in China since there are reports suggesting that the car manufacturer has already planned to register the availing high-end technology with the Chinese authorities. The US electric vehicle giant is also considering the idea of charging users in China a monthly fee to use the software as it steps into its second-largest market.
Obtaining registration approval from China’s Ministry of Industry and Information Technology would allow Tesla to begin internal testing of FSD on roads legally in China in the near future, in preparation for offering the feature to Chinese users with a paid upgrade afterwards, both sources said. Currently, Tesla offers two relatively inferior versions of the Autopilot driving automation system in China.
Currently, Tesla provides FSD for cell owners for an initial payment of 64,000 yuan (USD 8,828.32). However, the company could decide to make the service paid in the future, which if we calculate could be around USD 98 subscription fee per month according to the sources. Furthermore, based on the articles obtained from Reuters, Tesla has previously considered to allow FSD to be used in cars made by other manufacturers in China.
