Tesla Inc (NASDAQ:TSLA) saw its market share in China continue to shrink sharply in June, with sales down 24%, while closest electric vehicle rival BYD increased deliveries by more than 35%.
Sales of China-made Tesla models numbered 71,007 last month, data from the China Passenger Car Association (CPCA) showed.
This was down 24.2% from a year earlier, while its EV deliveries fell 2.2% compared to May.
Tesla is scheduled to report its second-quarter delivery figures later today, with a drop in deliveries in the April-June period expected, despite slashing prices on some models.
Analysts at Barclays have predicted the quarter will have seen an 11% decline in deliveries.
If so, it would be the first time that CEO Elon Musk has overseen two consecutive quarterly declines and could see it lose the crown of largest EV seller to BYD again.
The Chinese EV company sold 340,211 EVs and hybrid passenger vehicles in June, up 35.2% year on year.
Over the second quarter as a whole BYD increased total sales 21% in the second quarter, according to Reuters.
Other Chinese EV manufacturers, NIO Inc, Li Auto, and Xpeng Inc (NYSE:XPEV) released monthly and quarterly delivery numbers on Monday, with all three showing solid gains.
For BYD it was a record level of sales in June and the second quarter.
"This closes the gap with Tesla, to which it surrendered the mantle of global EV leader in the first quarter when sales were notably sluggish," said analysts at AJ Bell.
"While some of the driver for the sales increase has been price cuts, it is significant that BYD has revamped its tech to encourage greater demand."
BYD has recently moved to lift its profile in Europe as an official partner of the Euro 2024 football tournament, though it faces extra tariffs in Europe and the US.