June sales for China’s EV leaders – Nio, Xpeng, and Li Auto – soared, marking a notable rebound as buyers flocked back to the market. This resurgence indicates a promising upturn for an industry pivotal to China’s economic recovery.
Li Auto, based in Beijing, reached a new milestone of 32,575 deliveries in June, marking a 15.2% increase from May. This success represents the third consecutive monthly sales record for the company.
Meanwhile, Shanghai’s Nio delivered 10,707 cars in June, an increase of three-quarters from the previous month. Guangzhou-based Xpeng saw its highest monthly sales for 2023, with a 14.8% increase from May, amounting to 8,620 units.
These figures underscore the return of consumers who previously remained cautious during a price war that rattled the automotive market earlier this year. As prices stabilized, many potential buyers decided to make their move, as evidenced by a research note from Citic Securities.
“EV manufacturers are set to witness robust sales in the latter half of this year as countless drivers have commenced their EV buying plans after a period of hesitation,” noted Shanghai-based independent analyst Gao Shen. “The introduction of new models will likely prove transformative.”
These three Chinese EV giants, listed on both the Hong Kong and New York stock exchanges, have made significant strides in trying to match Tesla’s dominance in the mainland Chinese market. They have been honing their offerings with advanced batteries, preliminary self-driving technology, and intricate in-car entertainment systems.
While Tesla does not disclose its monthly sales in China, data from the China Passenger Car Association (CPCA) revealed that the US company’s Gigafactory in Shanghai delivered 42,508 vehicles in May, up 6.4% from April.
The Chinese EV trio’s robust delivery figures reinforce a bullish projection by the CPCA, which estimated about 670,000 electric and hybrid vehicles would be delivered in June, marking a 15.5% increase from May and a 26% increase year-on-year.
Despite a sluggish economy, China’s EV industry stands out as one of the few sectors exhibiting growth. UBS analyst Paul Gong projects a 35% increase in sales of battery-powered vehicles this year, reaching 8.8 million units, albeit a deceleration from the 96% growth witnessed in 2022.
Moreover, Xpeng is aiming to rejuvenate its sales with the launch of its G6 SUV model, priced 20% lower than Tesla’s popular Model Y. The G6, which saw 25,000 orders during a 72-hour presale period in June, is expected to enhance its market presence with its limited self-driving capabilities in major Chinese cities using Xpeng’s Navigation Guided Pilot (NGP) software.
EDITORS’ PICKS: Google Faces German Antitrust Claims
