However, Tesla’s share in China’s market of pure electric and plug-in hybrid cars fell to 8.8 percent in the second quarter from 10.5 percent in the first three months, according to Reuters’ calculation based on CPCA numbers.
With domestic consumer demand weak, the world’s largest auto market has been grappling with a price war triggered by Tesla in January that has since spread to more than 40 brands offering discounts on their vehicles.
While the price cuts initially boosted sales, the market’s recovery has been losing steam, prompting local authorities to roll out more buyer incentives, including purchase tax breaks for EVs.
Two days after organising an industry-wide pledge to avoid “abnormal pricing,” the China Association of Automobile Manufacturers (CAAM) retracted on Saturday, citing antitrust law.
The joint pledge by 16 automakers, including Tesla, BYD, Nio, Li Auto and Xpeng had been interpreted by some as signalling a truce in the price war that crippled industry earnings.
