(Bloomberg) -- Tesla Inc. shipments from its factory in Shanghai slumped to the lowest in more than a year amid a Lunar New Year holiday sales lull and renewed price competition in the world’s biggest electric vehicle market.

The US automaker shipped 60,365 vehicles from its China factory in February, according to preliminary data released Monday by China’s Passenger Car Association, the lowest such figure since December 2022 and down almost 16% month-on-month. Year-on-year it was a wider 19% decrease.

Auto sales in China are generally slower over the Lunar New Year period, when millions of people across the country take time off work and travel home to visit family and friends. 

And like in many places around the world, growth in China’s EV market more generally is slowing. Shipments of new-energy vehicles to dealers are projected to increase 25% to 11 million units this year, PCA has said. While still expanding, that’s a slowdown from 36% in 2023 and 96% in 2022.

Sales of new-energy vehicles, which includes pure battery EVs and plug-in hybrids, fell 9% last month versus February 2023 to 450,000 units, according to the PCA’s latest estimates. Numerous price cuts by major manufacturers may have prompted consumers to hold back on purchases in the hope that prices may drop further, the association said.

Tesla has been rolling out a number of incentives to boost sales in China, where it is coming under increased pressure from local rivals such as BYD Co. Last week, the US EV maker said that customers placing orders for a rear-wheel drive Model 3 sedan or Model Y sport utility that are in stock for delivery by the end of March can get an insurance subsidy of as much as 8,000 yuan ($1,110).

It’s also offering preferential financing plans and discounts on some optional paint colors. 

Tesla isn’t the only one hurting. BYD’s February vehicle sales were 122,311 units versus 193,655 the same month last year, down 37%.

--With assistance from Chunying Zhang and Jinshan Hong.

©2024 Bloomberg L.P.