Chinese electric vehicle makers are continuing to enjoy soaring sales in their home market, in particular the likes of BYD, Li Auto, and Nio.
Information shared to the Shenzhen Stock Exchange by BYD recently reveals that it delivered 262,161 plug-in hybrid and battery-electric vehicles in July. This represents a 3.6% increase from the month prior and also broke the company’s monthly sales record for the third consecutive month, South China Morning Post reports. BYD did not specify how many of its sales were PHEVs and how many were BEVs.
Li Auto has also experienced a spike in sales. It managed to deliver 34,134 vehicles to customers last month, an increase over the record 32,575 that it delivered in June. Similarly, Nio managed to deliver 20,462 vehicles in July. This represents a massive increase from the 15,815 units it delivered last December which had remained its most prolific month up until now.
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Sales over at Xpeng also jumped to 11,008 units, a 27.7% increase from June.
The dramatic increase in sales comes a few months after dramatic price cuts were made to many EVs sold in China earlier this year. Initially, these cuts did not have a dramatic impact on sales as it is thought that many were waiting for additional cuts that never came. Those holding out for further price cuts started entering the market in mid-May, Citic Securities says.
“Chinese drivers that played a wait-and-see attitude in the first half of this year have made their purchase decisions,” Suolei advisory firm senior manager Eric Han added. “Carmakers like Nio and Xpeng are ramping up production as they try to execute more orders for their cars.”
The Chinese government is also playing a role in stroking demand. It recently confirmed that new EV buyers will be exempt from a 10% purchase tax in both 2024 and 2025. This exemption was originally going to be removed at the end of 2023.
