Tesla’s (NASDAQ:TSLA) Model Y is selling well in China less than three months after deliveries of the midsized electric sport utility vehicle (SUV) started.
The Model Y was the third best-selling electric vehicle in China in February with 4,630 units sold, according to data released by the China Passenger Car Association. Taking January into account, the data showed the Model Y was the ninth-best seller among electric vehicles.
Tesla announced on New Year’s Day that its China-made Model Y would begin deliveries at a price that Chinese media said was 30% cheaper than previously announced.
The Model Y SUV sold well despite the fact that car sales in China typically fall during the week-long Lunar New Year holiday that occurred in mid-February this year.
Nationwide car sales in China fell 45.5% in February from January, according to the car association. For the first two months of the year, data showed nearly 3.34 million passenger cars have been sold in China, with electric vehicles accounting for 7.5% of total sales.
Chinese electric car start-ups Xpeng (NYSE:XPEV) and Li Auto (NASDAQ:LI) both announced a sharp drop in deliveries in February to just over 2,000 vehicles each and low forecasts for the first quarter. Tesla rival Nio (NYSE:NIO) reported roughly twice the deliveries in February and a much higher guidance for the first quarter.
First place went to the Hongguang Mini, a low-cost miniature electric car developed by General Motors’ joint venture with Wuling Motors and state-owned SAIC Motor. Tesla’s Model 3 electric sedan, which was the bestselling electric car in China during 2020, ranked second for February and the first two months of the year.
In third place for January and February combined was BYD’s luxury Han sedan. The vehicle, which comes in both electric and hybrid models, has surged in popularity since its launch last summer.