The economic context in which the Chinese automotive market is currently moving does not favor the electric segment. Demand for EVs is in fact proving to be declining, and is not sparing any manufacturer. Neither Tesla, which in China, in Shanghai to be precise, built the Gigafactory where the Model Y is produced, also and above all for the local market. News in recent days is that the American company has cut production of its electric SUV at its Chinese factory from March to June by a double-digit percentage.
Tesla cuts production in China
What is this percentage? We’re talking about 20%, a fifth so to speak. A move that according to Tesla serves to respond to the weakening of demand precisely due to the Model Y in China. And data from the China Association of Automobile Manufacturers, better known as CAAM, showed that the production of the Model Y in the Asian country is in fact in the process of decrease: it amounted to 49,498 units in March and 36,610 units in April, respectively 17.7% and 33% less than a year ago.
The situation in Shanghai
Numbers in hand, in total Tesla produced 287,359 units of Model Y and Model 3 in Shanghai in the first four months of 2024, 5% less compared to the same period last year, despite however a production of the Model 3 that is revealed higher than 10%. According to Reuters, it is not yet clear whether this production cut will also be extended to the second half of this year or even to the Model 3 made in Shanghai, nor whether Tesla factories in the United States and Germany will also adopt similar production cuts.
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