Tesla’s position in China is under threat from various Chinese automotive marques. In April, GAC’s EV-focused marque Aion outsold Tesla for the first time ever.

According to sales data compiled by the China Passenger Car Association (CPCA), a total of 1.63 million vehicles were sold in April alone. Out of which, a total of 527,000 units of New Energy Vehicles (NEVs) were sold. NEV is a Chinese term that includes battery electric vehicles (BEVs), plug-in hybrid vehicles (PHEVs), range extender vehicle (REVs), and fuel cell vehicles (FCEVs).

For the first time ever, GAC’s sub-brand Aion outsold Tesla, recording a total of 41,012 units. It marks a year-on-year increase of 402 percent. From January to April, Aion's cumulative sales have reached 121,320 units, a year-on-year increase of 120%.

Part of the reason why Aion’s sales have been on an upward trend was due to the introduction of models like the Aion S Plus and Aion Y.

The Aion S Plus is Tesla Model S rival that’s considerably cheaper than the Tesla, while the Aion Y is a BYD Atto 3-sized crossover.

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Tesla, on the other hand, sold just 39,956 units in April. Between January to April, Tesla sold a total of 177,385 units. One possible reason for Tesla’s drop in sales is because Tesla is prioritizing production for export instead of domestic market. Recall that Tesla’s Giga Shanghai factory is responsible for the production of most right-hand drive, current-generation Tesla models.