Tesla The company remains a strong contender in Beijing’s fiercely competitive electric vehicle sector as sales of its China-made electric vehicles edged up in January from a year earlier amid an industry-wide slowdown.

according to data Data released by the China Passenger Car Association on Wednesday showed that Tesla’s Shanghai Gigafactory sales increased 9% to 69,129 units in January, compared with 63,238 January 2025.

The latest January deliveries put Tesla in third place among other Chinese electric car makers. BYD Shipments reached 205,518 units, ranking first, while auspicious According to CPCA data, it ranked second with 124,252 vehicles.

Despite the increase in deliveries, there is little sign that demand for Tesla products is actually growing in China, the world’s largest electric vehicle market.

The company’s January delivery data reflects total shipments from Tesla’s Shanghai Gigafactory, which produces Model 3 and Model Y for domestic and foreign markets in Europe, Asia-Pacific and other regions.

New registrations for Tesla passenger cars in January – a proxy for sales – slightly increased in Europe, according to Reuters.

domestic price war

Tesla faces stiff competition from a number of Chinese electric car brands that offer more affordable products. in separate ReportThe CPCA noted that total sales of electric vehicles produced by Tesla in China fell 4.8% in 2025, making it one of only two manufacturers in Beijing to report a year-on-year sales decline.

Tesla’s base price is approximately 235,500 yuan ($33,943) Model 3 The sedan costs nearly three times the price of the base model world sealaround 79,800 yuan.

Like other automakers, Tesla has sought to maintain its competitiveness in China by slashing prices. According to its Chinese websiteTesla has begun offering five-year zero-interest loans, or seven-year “ultra-low” interest rates, for orders placed before February 28.

“Despite government and industry calls on automakers not to adopt aggressive pricing strategies, our price war has continued,” Abby Tu, principal research analyst for S&P Global Liquidity, told CNBC.

Despite these concerns price warChina’s electric vehicle market has slowed significantly.

According to the CPCA dataSales of new energy vehicles (including hybrid vehicles and pure electric vehicles) increased by only 1% year-on-year in January, the fourth consecutive month of slowing growth.

The slowdown is expected to continue as Beijing slashes support for new electric vehicle sales. Starting from January 1, the new energy vehicle purchase tax will return to 5%, after being exempted from the 10% tax for more than ten years. New energy vehicles include pure electric vehicles and hybrid vehicles.

new regulations

Beijing’s recent announcement that it will effectively ban hidden door handles further exacerbates Tesla’s challenges.

On Monday, China’s Ministry of Industry and Information Technology Announce From January 1, 2027, all car door handles sold in the country must have internal and external mechanical releases.

The announcement follows a series of high-profile news event In the United States and China, passengers in electric vehicles involved in road accidents were unable to be rescued after their vehicles caught fire due to a loss of power to the door locking mechanism.

While China’s automakers have a good runway to ensure compliance with the new regulations, it remains to be seen how Tesla will adapt, considering flush door handles first became popular as a signature design feature of Tesla’s minimalist cars.

Some analysts, including Tu Le, founder and managing director of consulting firm Sino Auto Insights, believe China’s door handle restrictions on new cars could cause Tesla a “considerable headache.”

However, Le said China’s new rules would likely have little impact on most automakers.

“I think for many Chinese brands, this new regulation will not come as a surprise to them because the regulators consulted extensively with OEMs and industry experts when drafting the new regulations,” Le added.

CNBC’s Evelyn Cheng contributed to this report.

Correction: This copy has been updated to correctly reflect the spelling of Abby Tu, principal research analyst for S&P Global Liquidity.