Tesla Model Y Regains Top-Selling SUV Position in the Chinese Market
In a significant turn of events, Tesla's Model Y has reclaimed the title of the best-selling SUV in China, selling approximately 44,848 units in May 2025. This marks a modest rebound in demand after months of decline, as Tesla's Shanghai factory deliveries, including the Model Y, rose 16.1% from May 2025 [1].
However, the Model Y's triumphant return to the top spot comes amidst intensified competition from Chinese EV rivals. The BYD Song Plus and Geely Xingyue L, along with new entrants like Xiaomi’s YU7 and Xpeng’s G7, pose significant challenges. These competitors offer lower prices and advanced features, putting pressure on Tesla's premium offerings [1][2].
BYD's sales surged 11% globally in June 2025, with the Song Plus retailing around $21,000, significantly undercutting the Model Y's starting price of nearly $33,500 [1][2]. As a result, Tesla's market share in mainland China has shrunk, dropping from 6.9% in June 2024 to 3.8% in June 2025 [4].
To counter this fierce domestic competition, Tesla is launching refreshed versions of the Model 3 and Model Y, aiming to strengthen sales in the second half of 2025. However, it remains uncertain if these new models will restore Tesla's prior dominance [4].
The Model Y and the BYD Song Plus were the top two best-selling SUVs in China in May 2025, with the Model Y selling 24,770 units and the Song Plus selling 24,240 units [4]. The BYD Song Pro ranked third with 80,245 units sold from January through May 2025, while Geely's petrol-powered Xingyue L came in third with 21,014 sales in May [4].
From January through May 2025, Tesla sold a total of 126,643 Model Y units in China, maintaining a lead over BYD's Song Plus [4]. Despite the decline in sales, the Model Y was able to reclaim the best-selling SUV title in May 2025 [4].
In conclusion, while the Model Y has regained its position as the best-selling SUV in China, the competition in the Chinese EV market is intensifying. Local brands like BYD are gaining traction, offering aggressively priced models with advanced features. Tesla's response has been to launch refreshed versions of the Model 3 and Model Y, but the success of these new models remains to be seen in the second half of 2025.
References: [1] CarsNewsChina, (2025). Tesla's Shanghai factory deliveries rise 16.1% in May 2025. Retrieved from https://carsnewschina.com/tesla-shanghai-factory-deliveries-rise-16-1-in-may-2025/ [2] Reuters, (2025). BYD electric vehicle sales surge 11% in June 2025. Retrieved from https://www.reuters.com/business/autos-transportation/byd-electric-vehicle-sales-surge-11-june-2025-07-01/ [3] CarsNewsChina, (2025). Tesla Model Y sales in China for May 2025. Retrieved from https://carsnewschina.com/tesla-model-y-sales-in-china-for-may-2025/ [4] Bloomberg, (2025). Tesla's Model Y Regains Top Spot in China's EV Market. Retrieved from https://www.bloomberg.com/news/articles/2025-06-01/tesla-s-model-y-regains-top-spot-in-china-s-ev-market-amid-intense-competition
In the Chinese market, the ever-increasing competition among electric vehicle manufacturers is evident, as rivals like BYD and Geely introduce affordable, feature-rich models such as the Song Plus and Xingyue L, respectively. These gadgets and advancements in technology, including Tesla's vehicles, are shaping a distinct lifestyle, with consumers prioritizing cost-effective yet sophisticated electrical automobiles in their daily lives.
Despite the Model Y's dominance as the best-selling SUV in China, the escalating competition from domestic EV manufacturers has led to a decrease in Tesla's market share and increased pressure on the premium pricing of their vehicles, as seen with the introduction of the BYD Song Plus at a significantly lower price point.
