Tesla wants to recall 1.6 million cars in China for a software update containing “security risks,” in a major blow to the US manufacturer, which has been overtaken by its Chinese rival BYD in sales of electric cars.

China's market regulatory authority said yesterday that the recall is aimed at fixing defects in software for driver assistance systems and car door lock systems.

The process concerns two batches of cars produced between 2014 and 2023 and covers a total of 1.6 million Model S cars.

According to assessments by the China Regulatory Commission, this manufacturing defect “increases the risk of collision with the vehicle and poses a safety problem”. Last December, Tesla recalled two million cars in the US due to a risk related to its driver assistance system.

China is the most important market for the brand as it has a factory in Shanghai, the largest factory outside the US. Tesla plans to produce more than 900,000 cars at its Chinese factory by 2023, according to the New China News Agency (Xinhua).

Tesla faces tough competition in China, the world's largest car market, where it competes with a host of local brands that are introducing their innovations in the field of electric vehicles. Tesla's most dangerous competitor in this field is BYD.

BYD takes the lead in electric car sales from Tesla in the last quarter of 2023.