Tesla’s sales of China-made electric vehicles (EVs) experienced a significant 128% year-over-year increase in July, even as the company faced a month-on-month drop of 31%, according to data from the China Passenger Car Association (CPCA).
The automaker sold 64,285 China-made EVs in July, up from 28,217 in the same month last year. The increase is remarkable, considering that last year’s July figures were affected by a planned upgrade to Tesla’s Shanghai factory, which led to a temporary reduction in production.
Despite the strong year-over-year growth, the July figures marked Tesla’s first month-on-month decline since December, leading to speculation about the impact of the company’s preparation for a revamped Model 3 launch, during which some production was idled.
Tesla’s focus on the Chinese market has been evident in its aggressive pricing strategies and various incentives. The company initiated a price war at the beginning of the year and offered cash bonuses on top-selling models in China in July, further stimulating sales.
Typically, the first month of a new quarter usually has lower sales, while the last month of a quarter is where automakers such as Tesla push hard to increase quarterly numbers.
Tesla also recently made filings in China to suggest it is ready to launch its ‘Highland’ refresh for Model 3 and eventually Model Y.