Chinese electric vehicle makers BYD, Leapmotor, and Geely-owned brand Galaxy delivered record-breaking numbers in August, as demand began to pick up partly due to government stimulus measures, according to company statements issued on Sunday. Meanwhile, sales of Huawei-backed EV brands dropped sharply.
Why it matters: The figures come after many Chinese automakers have launched new and redesigned models, greatly increasing their store traffic and boosting sales, despite summer being typically a low season for car demand in China.
- Beijing’s new subsidies for consumers to trade in their old, less eco-friendly cars for new and greener ones is another driving factor, said the China Passenger Car Association (CPCA) in a post (in Chinese).
- The industry group expected sales of China’s new energy vehicles (NEVs), including all-electrics and plug-in hybrids, to improve by 36.6% year-on-year and 11.6% month-on-month to 980,000 units in August.
Details: Stellantis-backed Leapmotor in August surpassed the threshold of 30,000 units sold for the first time since its inception, as sales of its C16 sports utility vehicle continue to gain traction. More than 8,000 units of the affordable six-seater SUV, which went on sale on June 28 at a starting price of RMB 155,800 ($21,937), were handed over to customers last month.
- Geely’s mainstream EV lineup Galaxy also set a new delivery record, generating 26,510 unit sales in August, which represented a 58.7% increase from a month earlier. The strong growth was partly driven by the launch of the E5 all-electric compact crossover, featuring an in-car operating system called Flyme Auto, which is priced between RMB 109,800 and RMB 145,800 until the end of September.
- Meanwhile, sales of Huawei’s Harmony Intelligent Mobility Alliance (HIMA) dropped sharply partly because Seres, a manufacturing partner of Huawei, was reportedly refining manufacturing lines before launching upcoming models. Seres, as well as Chery, together delivered 33,699 EVs featuring Huawei’s in-car technology in August, down 25% from a month earlier and far fewer than rival Li Auto.
- Notably, Volkswagen-backed Xpeng Motors recorded its highest monthly deliveries this year, signaling a likely recovery after nearly a year of lackluster sales. The company said it delivered 14,036 units last month and secured more than 30,000 reservations with non-refundable RMB 5,000 deposits for the MONA M03 sedan in the 48 hours after its unveiling on July 27.
- BYD clocked its highest-ever sales of 370,854 passenger EVs in August with 35.3% year-on-year growth. Last month, the EV giant rolled out several new and updated models to defend its dominant position, including a facelift of its Seagull small SUV, priced from RMB 69,800, and a RMB 339,800 luxury grand tourer, the Denza Z9 GT. It also unveiled the first multi-purpose vehicle under the Dynasty lineup, the Xia, on August 30.
Context: China’s central government announced on August 16 that subsidies for trade-ins of NEVs and internal combustion engine cars have doubled or more to RMB 20,000 and RMB 15,000, respectively, a significant ramp-up compared with the previous rules issued in April.
READ MORE: BYD, Li Auto, Leapmotor post record monthly sales, putting pressure on rivals
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