Korean Media: Tesla Is South Korea’s Best-Selling Imported Car, but Sales in China Dropped 19% Over Three Years

On September 19, the Korean media outlet *Today's Finance* published an article stating that although Tesla’s Shanghai factory has long been focused on meeting the explosive domestic demand in China, its role has recently shifted increasingly toward becoming an export hub. This strategic pivot aims to mitigate potential inventory risks arising from intensifying competition from Chinese domestic automakers, as Tesla actively expands its overseas sales operations.

Data released by the China Passenger Car Association shows that Tesla sold a total of 238,955 vehicles in China during the first half of this year, representing a decline of approximately 9% compared to the same period last year, and about 19% fewer than the record high achieved in the first half of 2023.

Meanwhile, export volumes rose by 127% year-on-year in the first half of the year, reaching 228,994 units. As a result, the share of Tesla vehicles produced at the Shanghai plant destined for international markets increased from 28% last year to 49% this year. This means that nearly half of all “Made in China” Tesla models are now being shipped to South Korea, Europe, Canada, and other overseas markets rather than sold domestically in China.

An analysis suggests that rising competition from domestic brands such as BYD, Xiaomi, and NIO is eroding Tesla’s market position in China. As Chinese manufacturers continuously introduce models with lower prices and more advanced features, Tesla’s incremental updates—limited largely to the Model 3 and Model Y—have led to perceptions of product obsolescence.

Consequently, the Shanghai factory is increasingly functioning as a global export center rather than solely serving the domestic Chinese market. Indeed, according to the China Association of Automobile Manufacturers, Tesla’s Shanghai plant recorded a monthly wholesale volume of 93,000 units in July—the highest level of the year—with industry insiders noting that the majority of these sales were driven by exports.

Following its transformation into an export-focused facility, Tesla’s sales in South Korea have surged. According to data from the Korea Automobile Importers Association, Tesla electric vehicles registered 10,237 units in South Korea in July—far surpassing traditional automotive giants such as BMW (6,533 units) and Mercedes-Benz (3,959 units)—securing the top spot in the import car market. Since February, Tesla has maintained its position as the best-selling imported vehicle in South Korea for six consecutive months.

Original source: toutiao.com/article/1876750409122825/

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