Tesla Losing Ground in China, Consumers Prefer BYD and Xiaomi

KatadataOTO – The electric vehicle brand Tesla was once a top choice for EV (Electric Vehicle) consumers. However, in China, its presence is fading.

Reporting from CnEVPost, a study shows that Chinese consumers prefer local brands like BYD (Build Your Dreams) and Xiaomi.

“In China, we see intense competition and Tesla is no longer seen as the technology leader,” wrote the UBS research team, quoted on Saturday (31/05).

Only 14 percent of consumers stated Tesla as their electric car brand of choice. Last year, the percentage was 18 percent.

Photo : Glamour Auto Boutique

In fact, after the United States, China is the second-largest market for Tesla. As much as 40 percent of Tesla's global sales in the first quarter of 2025 came from China.

But overall, Tesla's sales from January to April 2025 were 163,338 units, down 0.31 percent year-on-year.

Meanwhile, Tesla's market share among other Chinese-made BEVs (Battery Electric Vehicles) was only 7.96 percent from January-April 2025, down from 11.44 percent in the same period last year.

Besides China, the UBS study also highlights the fact that Tesla is also experiencing difficulties in the US and European markets.