By Sherry Qin

Tesla China plans to fix 1.2 million China-made and imported vehicles with software issues as a dozen carmakers recalled vehicles over safety concerns in the world's largest auto market.

The U.S. electric-vehicle giant recalled 335,716 vehicles, a mix of imported Model S and X and locally produced Model 3 and Y cars, over a potential malfunction of the rear-view camera, China's State Administration for Market Regulation said Friday.

It also recalled 871,087 Model 3 and Y cars made in China due to steering issues, the state market regulator said.

The EV maker will deploy a software update for the affected vehicles remotely for free, the SAMR said.

Tesla China recalled 1.6 million cars last January, its largest in the country, to fix issues with its driver-assistance features that could increase the risk of crashes.

Tesla has been facing tougher competition in China, where homegrown rivals, such as BYD, have tightened their grip on the country's EV market. The U.S. automaker sold 93,766 China-made cars last month, ranking fifth in terms of car sales in China for December after falling out of the top three spots in October.

Xiaomi, an up-and-coming domestic player, recalled 30,931 vehicles over software issues that could affect its parking-assistance feature, the market regulator said in a separate statement.

A dozen carmakers announced recall plans on Friday. The regulator regularly publishes vehicle recall information.

BYD, China's top carmaker, recalled 6,843 Bao 5 plug-in hybrid off-road SUVs from its premium brand Fangchengbao due to fire risk in China. Honda Motor's Chinese joint ventures Dongfeng Honda and GAC Honda will recall a total of 1.37 million vehicles, effective Feb. 28.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

January 24, 2025 05:54 ET (10:54 GMT)

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