Tesla Reclaims Top Spot as Best-Selling EV Startup in China
Tesla has once again established itself as the leading electric vehicle (EV) maker in China, surpassing its competitors with a remarkable 60% week-on-week increase in deliveries. The American automaker delivered an impressive 11,700 units in a single week, a feat attributed to recent price cuts. This resurgence has solidified Tesla’s dominance in the Chinese EV market.
Strong Showings from Li Auto and AITO
While Tesla emerged as the clear leader, Li Auto managed to secure second place with 7,700 units sold and a significant year-on-year growth rate of 13%. AITO also witnessed a remarkable increase in sales, reaching a record level of 7,300 units, representing a week-on-week growth of 7%. These figures demonstrate the resilience of the Chinese EV market.
Steady Growth for XPeng and Nio Inc.
Despite facing stiff competition, XPeng and Nio Inc. were able to achieve modest growth in weekly sales, with both companies selling between 1,800 and 1,900 units. This recovery highlights their ability to adapt to market conditions and maintain a steady foothold in China’s EV sector.
Soft Sales for BYD
However, Chinese automaker BYD experienced softer sales, reaching a nine-month low of 40,200 units. This decline may indicate a need for the company to revamp its strategies and regain momentum in the competitive EV market.
Overall Growth in China’s Passenger Vehicle Sales
On the whole, China’s passenger vehicle (PV) sales saw a significant 6% week-on-week increase, reaching a total of 464,900 units. This growth signifies a recovery for the PV market after a recent sales push. Furthermore, New Energy Vehicle (NEV) sales slightly outpaced PV sales with a 7% week-on-week growth. However, NEV penetration remained stagnant at a six-month low of 31%.
Potential Challenges Ahead
Industry experts predict a potential decline in end demand in the weeks leading up to the Chinese New Year. As a response, some original equipment manufacturers (OEMs) may resort to more aggressive promotions to stimulate car purchases. Morgan Stanley’s checks suggest that certain OEMs have already exhausted their current orders and will need to rely on creative marketing strategies to sustain sales numbers.
Future Outlook for PV and NEV Sales
The China Passenger Vehicle Association (CPCA) predicts a 7% month-on-month drop in PV retail sales and a 15% decrease in NEV retail sales for January. It is anticipated that PV sales will reach approximately 2.2 million units, while NEV sales are projected to reach around 800,000 units. These figures underscore the importance of ongoing efforts to stimulate demand and maintain a healthy growth trajectory for the Chinese automotive industry.
Tesla’s stock price has responded positively to the latest developments, with a 1.43% increase during early trading on Tuesday morning.
Analyst comment
Positive news: Tesla reclaimed its top spot as the best-selling EV startup in China, delivering 11,700 units in a single week, thanks to recent price cuts. Li Auto and AITO also showed strong growth. XPeng and Nio Inc. achieved modest growth, while BYD experienced softer sales. China’s passenger vehicle sales and New Energy Vehicle (NEV) sales saw overall growth, but NEV penetration remained stagnant. Potential challenges ahead include a decline in end demand leading up to the Chinese New Year. Overall, the market is expected to see a drop in January, but ongoing efforts to stimulate demand are crucial for maintaining growth. Tesla’s stock price responded positively with a 1.43% increase.
