October was another impressive month for electric vehicle (EV) sales in China, with BYD surpassing 300,000 monthly deliveries for the first time. This Chinese EV and battery giant also reported an increase in overseas deliveries, intensifying its competition with Tesla. Among the Chinese EV startups, Li Auto and XPeng achieved record monthly delivery numbers, with XPeng experiencing the highest month-over-month growth. Nio, despite introducing new and refreshed models, lagged behind its startup rivals in October. The stock of XPeng saw a significant jump after it was labeled a top pick in the EV market by a Wall Street firm. Additionally, the stock of Toyota surged following strong earnings and EV sales.
Toyota posted record earnings for its fiscal second quarter and increased its full-year operating profit forecast by 50%. The company cited robust global demand for hybrid electric vehicles and a weaker yen as contributing factors. In the US, Toyota’s electrified vehicle sales in October, including hybrid electric vehicles, rose by 46% year-over-year, accounting for nearly one-third of total sales for the month. However, Toyota mostly sells hybrid EVs and is gradually expanding its presence in battery electric vehicles.
BYD sold 301,833 battery electric vehicles and plug-in hybrid electric vehicles in October, a 5% increase from September. This marked the first time the EV giant achieved over 300,000 monthly sales. BYD aims to sell at least 3 million EVs this year and is offering discounts on several models to reach this target. In Q3, BYD sold slightly fewer EVs (431,603) than Tesla (435,059), making it poised to outperform Tesla in battery electric vehicle sales in Q4.
Li Auto reported 40,422 EV sales in October, surpassing the 40,000-unit mark for the first time. The startup highlighted steady growth for ten consecutive months and its dominance in premium SUV sales priced above RMB 300,000. Li Auto plans to release its first all-electric vehicle, the Mega, targeting multigenerational households, with a price above RMB 500,000.
XPeng achieved a new monthly record with 20,002 EV deliveries in October, marking the ninth consecutive month of robust growth. The recently released G6 SUV accounted for 43.7% of total sales and showed strong demand, comparable to Tesla’s Model Y. XPeng also formed partnerships with Volkswagen and Chinese ride-hailing giant Didi.
Nio sold 16,074 EVs in October, a 2.8% increase compared to September. However, without a breakdown by model, specific sales figures are not available. Nio’s expanded lineup includes eight new models, including the popular ES6 SUV.
Overall, EV sales in China are anticipated to continue rising, with retail sales of new energy vehicles expected to reach approximately 750,000 units in October. China’s EV market is predicted to maintain strong growth momentum throughout the final quarter of 2023, buoyed by new product launches and automaker discounts. The China Passenger Car Association estimates that around 8.5 million EVs will be sold for the full year, led by BYD. While growth in the Chinese EV market is slowing compared to previous years, it is still expected to expand by approximately 31% compared to 2022.
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