China’s electric vehicle manufacturer Li car (LI), Nio (NOK) and XPeng (XPEV) reported April deliveries early Wednesday, trying to weather a fierce price war. Electric and battery giant BYD (BYDDF) will report April sales on Wednesday or Thursday.
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Li Auto reported lower sales compared to March, while XPeng and especially Nio recorded deliveries. All have launched new or updated models in recent months, but so has competition between each other, BYD, the EV brands supported by Huawei, as well as phone giant Xiaomi, which has carved out a big space for itself.
Weekly insurance filings point to a continued recovery for BYD as the company led the way in price cuts in 2024. Insurance registrations also pointed to a lackluster April Tesla (TSLA), which has cut prices and offered big incentives to boost sales in China.
Meanwhile, China is now offering consumers incentives to scrap older gasoline cars by the end of the year and buy electric or lower-emission combustion engine vehicles instead. That’s according to a new policy announced on Friday.
The subsidy is 10,000 RMB (US$1,409) for the purchase of a new energy vehicle, which includes pure battery electric vehicles (BEVs), plug-in hybrids (PHEVs) and fuel cell vehicles. The subsidy for low-emission ICE vehicles is RMB 7,000.
The policy is particularly likely to benefit electric vehicle manufacturers such as BYD, which sells many vehicles at low or moderate prices where the subsidy will make up a larger share of the price.
Li Auto Deliveries
Li Auto delivered 25,787 vehicles in April, down 11% from March but up 0.4% year-on-year.
This also includes the new Li Auto L6, whose deliveries began on April 24th.
The cheaper SUV is a smaller version of the L7, which in turn is smaller than the L8 and L9 SUVs. The L-Series models are all extended-range electric vehicles (EREVs), essentially a form of plug-in hybrid. Li Auto also sells the Mega Minivan, its first BEV model.
On April 22, Li Auto reduced the prices of L7, L8 and L9 by RMB 18,000 to 20,000 and the price of Mega by RMB 30,000.
Li Auto delivered 28,984 vehicles in March, up from its original target of 50,000 deliveries at the end of February. Li delivered 80,400 electric vehicles in the first quarter.
Nio Deliveries
Nio delivered 15,620 vehicles in April, up 31.6% from March and 134.6% from a year ago.
A more attractive battery-as-a-service (BaaS) offering, where Nio buyers rent the battery, contributed to the gains.
The 2024 ET7 and updated ES7 were unveiled at the Beijing Auto Show, with deliveries starting on April 30.
Nio delivered 30,053 electric vehicles in the first quarter.
XPeng Deliveries
XPeng delivered 9,393 electric vehicles in April, up 4.1% compared to 9,026 in March and up 23% year-on-year.
The electric vehicle maker has refreshed some models while offering significant discounts like many of its competitors.
XPeng delivered 21,821 vehicles in the first quarter.
Sales world
BYD sales totaled 313,245 in April, up 3.6% from 302,459 in March and 49% from 210,295 in April 2023. Passenger BEV sales totaled 134,465, a decrease of 3.9 % compared to March, but represents an increase of 28.8% compared to the previous year. PHEV sales of 177,583 rose 9.8% from March and 69% year-on-year.
While PHEV sales are once again at the top, BYD is still expected to retake the BEV crown from Tesla in the second quarter.
This also includes BYD’s premium brands Denza, FangChengBao and Yangwang.
Exports rose to 41,011 vehicles, surpassing March’s record of 38,434. That is 177% more than last year.
BYD sold 626,236 electric vehicles in the first quarter, including 300,114 passenger BEVs. That was a significant decrease from the 944,779 in the fourth quarter, but an increase of 13.4% year over year.
On Monday, BYD reported first-quarter net profit rose 11% in local currency terms and revenue rose 4%. Both missed analysts’ views. However, BYD’s profit margins hit new highs even as the auto giant made big price cuts to boost demand.
Tesla sales
Tesla does not release monthly sales in China, but industry groups will provide figures for April later in May.
Tesla had around 28,100 insurance registrations as of April 28th. Of these, 14,800 were in the last week. This follows renewed Tesla price cuts in China. Prices have been reduced by 4% to 6% for Models 3 and Y and by up to 22% for imported Models S and X vehicles. Tesla also offers 0% financing and other incentives.
EV stocks
Li Auto shares fell 1% early Wednesday after falling 2.5% on Tuesday. Stocks are trying to rebound after nearly halving from late February to late April, hitting their lowest level in nearly a year.
Nio shares rose more than 1% in early trading after rising 2.6% on Tuesday, working their way back toward their long-standing 50-day moving line. Nio recently hit its worst level in almost four years.
XPeng shares fell on Wednesday. Shares edged up 0.4% on Tuesday, trying to rebound from a 52-week low.
BYD shares are not yet trading after falling 1.45% on Tuesday. Shares are close to forming a base that has formed almost entirely below the 200-day line.
Tesla shares fell nearly 2% on Wednesday after sliding 5.5% on Tuesday. This comes after a 15% rise on Monday as the electric giant cleared key hurdles to launching full self-driving in China.
Please follow Ed Carson in threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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