Tesla's (TSLA.US) domestic vehicle sales in January decreased by 11.5% YoY, marking a fourth consecutive month of decline.

Intellasia Finance News learned that on Friday, China's CPCA showed that Tesla Inc. (TSLA.US) sold 63,238 domestically-made vehicles in January, down 11.5% YoY and 32.6% MoM, marking a fourth consecutive month of decline. Deliveries of the China-made Model 3 and Model Y fell 32.6% YoY. Last month, Tesla introduced an updated version of its popular SUV Model Y in China. It is facing increasing pressure from challengers in China.

Last month, Xiaomi's (01810) electric SUV SU7 sold more than Model 3, and its first SUV is expected to be launched this summer to compete with Model Y. The Dynasty and Ocean Net series of electric vehicles and plug-in hybrid vehicles from BYD (BYD.US) sold 296,446 units in total last month, up 47.5% YoY. BYD leads the pack, followed by Geely Automobile and Changan Automobile with about 121,100 and 65,900 units respectively, while Tesla China ranked fourth in January.

Tesla reportedly suspended production of some new Model Y lines in Shanghai for three weeks during the Chinese Lunar New Year to upgrade its production lines. In a fiercely competitive market, Tesla's share in the Chinese EV market has declined, while discounts and financing incentives in China and other markets hurt its profitability in the fourth quarter.

On Wednesday, in addition to offering a 10,000 yuan (US$1,372) unpaid loan discount for old Model Ys, and zero-interest financing for some Model 3s and old Model Ys for up to five years, Tesla announced a 8,000 yuan insurance subsidy for all Model 3s sold in China. Tesla plans to launch its advanced driving assistance software called "Full Self-driving" in China this year.