If you were to look simply at the soaring sales being reported by some electric car manufacturers in China, you may think these firms cannot put a foot wrong. However, with the exception of BYD, none of them are profitable.
Often viewed as the leaders of China’s EV wave, Xpeng, Li Auto, and Nio have been growing their respective presences not just in China but also around the world. Indeed, Xpeng’s deliveries jumped 98 per cent to 34,422 vehicles in the second quarter while those at Li Auto have risen by 63 per cent to 28,687 and Nio’s sales have advanced 14 per cent to 25,059 units.
Good news, right? Well, financial figures released by the three companies reveal that Xpeng’s net loss soared 126 per cent to 2.7 billion yuan ($376 million) in Q2 while Nio’s rose by 370 per cent to 2.8 billion yuan ($393 million). Similarly, Li Auto’s net loss hit 641 million yuan ($90 million), a 172 per cent increase, Auto News reports.
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It is a similar story at Changan Automobile Co. and GAC Motor Co. The former reported a net loss of 1.5 billion yuan ($210 million) in the first half of the year. Its Avatr EV sub-division also reported a loss of 252 million yuan ($35 million). As for GAC and its Aion EV brand, its yearly net loss is approaching 1.4 billion yuan ($196 million), even though sales have been rising.
Bucking the trend is BYD. The Warren Buffett-backed car manufacturer is China’s largest electrified-vehicle manufacturer, selling 641,350 vehicles in the first half of the year. BYD also happens to be China’s second-largest EV battery manufacturer and its profit recently jumped 206 per cent to 3.6 billion yuan ($505 million) in the first six months of this year.
