Will other brands like MG also follow BYD in outselling Tesla globally soon?
Tesla’s electric vehicle (EV) sales in Australia have experienced a sharp decline, marking a troubling trend for the American automaker. November 2024 marked the eighth consecutive month of year-on-year sales drops, a clear indication of Tesla’s struggle to maintain its dominance in the Australian market.
The sales slump comes amid increasing competition from Chinese manufacturers, who are gaining traction with more affordable and feature-rich EV options. According to data from the Electric Vehicle Council (EVC), Tesla sold just 2,540 vehicles in November, representing a 35.5 percent decrease compared to the same period in 2023.
Moreover, this continued downward trend is part of a larger pattern, with Tesla failing to achieve year-on-year growth since March 2024, when it sold 6,017 vehicles, reflecting a 68.2 percent increase over the previous year. The November sales drop follows closely after the MG4 EV made history by outselling both Tesla’s Model Y and Model 3 in a single month, a milestone that hasn’t occurred since the EVC began tracking EV sales in Australia.
The success of MG Motor Australia, particularly with the MG4, is a clear sign that Tesla’s long-standing dominance in the Australian EV market is being increasingly challenged. In October 2024, the MG4 became the first EV to outsell Tesla’s flagship models, signaling a shift in consumer preferences toward more budget-friendly EV options.
MG Motor, while also originally founded in the UK in the 1920s, has been owned by Chinese state-run automaker SAIC Motor since 2007. This change in ownership has helped MG and other Chinese brands, such as BYD, Zeekr, Leapmotor, and XPeng, to flood the market with competitively priced electric vehicles, taking a significant bite out of Tesla’s market share.
On top of that, the rise of Chinese EV makers is a key factor in Tesla’s struggles in Australia. These automakers are offering high-quality electric vehicles at lower prices than Tesla, making them a more attractive option for Australian consumers. Furthermore, the growing range of models and the increasing availability of electric vehicle charging infrastructure across the country are making EV ownership more practical and appealing.
As competition intensifies, Tesla’s once unchallenged position in the Australian market is now at risk, with Chinese rivals steadily gaining ground. In response to the growing competition, Tesla may need to adjust its pricing strategies and product offerings in Australia if it hopes to recover its market share and regain the momentum it once enjoyed in the region.
The next few months will be crucial in determining whether Tesla can reverse this decline or whether it will continue to lose ground to its competitors.
