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China’s premium EV makers Li Auto, Xpeng and Nio ride discounts to strong monthly sales
- Nio, BYD and Zeekr all reported record sales in June, but analysts said the reliance on discounts clouds the profitability forecast
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Daniel Renin Shanghai
China’s top three makers of premium electric vehicles (EVs) continued to grow on a fast track in June as discounts and incentives propelled deliveries even as they made profitability more difficult to achieve.
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Beijing-headquartered Li Auto, the nearest rival to Tesla in mainland China, led the pack with a 36.4 per cent month-on-month jump in deliveries to 47,774 units, just shy of the carmaker’s all-time high of 50,353 in December.
Guangzhou-based Xpeng saw its deliveries increase for the fifth straight month, with sales advancing 5.1 per cent month on month to 10,688 vehicles.
Shanghai-based Nio rewrote its record for the second straight month, with deliveries rising 3.2 per cent over May’s, hitting 21,209.
“The strong sales numbers add to evidence that the EV market in China is still growing despite worries about slowing momentum,” said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai. “However, leading players are now facing the hard task of improving profitability now that they have to offer discounts and other incentives to bolster sales.”
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The industry is still mired in a discount war amid overcapacity worries.
The three top premium EV builders grappled with a drop in deliveries in early 2024 when new rivals such as smartphone vendor Xiaomi launched their new models to attract wealthy drivers.
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