Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Investors Business Daily
Investors Business Daily
Business
APARNA NARAYANAN

China EV Sales: BYD Achieves All-Electric Milestone In October As Sales Surge

Chinese EV and battery giant BYD reported that sales of all-electric cars more than doubled in October, topping 100,000 for the first time, and putting the Tesla challenger on track to sell nearly a million fully electric vehicles in 2022.

On Nov. 1, Chinese EV startup Nio posted a triple-digit sales surge in October from a year ago. But Nio EV sales fell vs. September as China's "zero-Covid" curbs weighed on its suppliers.

However, Nio handily outsold Xpeng last month, while edging past Li Auto. All three Chinese EV startups saw month-over-month sales declines, despite launching several new models in recent months to stimulate sales.

In addition, Nio fell short of its expectations for record deliveries in every month of the fourth quarter.

China EV Sales: BYD

BYD sold a record 217,816 fully electric vehicle and plug-in hybrid vehicles combined in October, according to Chinese media reports Thursday. BYD's October sales shot up 169% from a year ago and were up 8% from September.

Sales of all-electric vehicles reached 103,157 last month, zooming up 150% from a year ago. It marked the first time that the Warren Buffett-backed company topped 100,000 "pure EV" sales in a month.

The October tally included 11,267 units of the new Seal EV, a Model 3 rival, up 51% from September. The tally also included 27,548 Yuan Plus EVs, which is being exported in most markets as the Atto 3. BYD also sold 56,843 Song EVs and PHEVs, 34,670 Qin EV and PHEVs and 31,614 Han EVs and PHEVs.

The Chinese EV and battery giant is preparing to launch a new, cheaper version of its flagship Han electric sedan. It's also ramping up new EVs like the Seal, which launched in late August. In Q3, BYD sold 538,704 electric and hybrid vehicles, nearly tripling EV sales vs. a year earlier.

On Oct. 28, BYD reported that third-quarter net income jumped 350% vs. a year earlier in local currency terms, with revenue up 116%. Adjusted earnings spiked 923%. Those were in line with preliminary earnings figures released earlier in the month.

BYD's overall sales have surged past Tesla's. It still lags in all-electric vehicles, but is closing the gap.

BYDDF stock rose 2.4% to 24.50 Thursday, just below the 21-day moving average. Tesla edged up 0.2%.

BYD and Nio launched several new EVs in Europe in October, part of a major international expansion for the former. BYD exports hit a record 9,529 vehicles in October, up from 7,736 in September and 4,026 in July.

Nio Sales

Nio delivered 10,059 electric vehicles, down 7.5% vs. 10,878 in September but up 174% from a year earlier. October's tally included 5,979 SUVs, including 2,814 new ES7s, and 4,080 sedans, including 3,050 new ET7s and 1,030 ET5s. The October tally also included leases in Europe, where Nio began a lease-only program last month, the company said Tuesday.

Year to date, Nio's EV deliveries are up 32% vs. 2021.

"Vehicle production and delivery were constrained by operation challenges in our plants, as well as supply chain volatilities due to the Covid-19 situations in certain regions in China," the Nio EV sales release added.

With three new EV models, Nio had previously said that it expects record deliveries in every month of the current fourth quarter. But October's results show it missed that goal.

In Q3, Nio outsold XPeng and Li Auto with a record 31,607 deliveries, as production improved and new models launched. It had lagged Xpeng and Li earlier this year.

On Monday, local media reports said that Nio customers are seeing deliveries of the new ET5 sedan delayed due to Covid-19. On Tuesday, Nio's two plants in Hefei were reported to be effectively shut down due to Covid-related disruptions.

Fresh Covid-19 curbs are being widely felt in China, beyond the auto sector, with Apple to Disney also said to be affected.

Nio will report Q3 financials on Nov. 10 before the U.S. market opens.

Nio stock popped 4.7% to 9.93 on the stock market today. NIO shares are far below the 50- and 200-day moving averages.

Xpeng Sales

XPeng sold 5,101 EVs in October, down nearly 40% vs. September, continuing a rapid month-to-month deterioration in sales.

October's deliveries included 2,104 P7 sedans, 1,665 P5 sedans and 709 G3i SUVs. Xpeng delivered 623 units of its new G9 SUV, which launched in September.

Year to date, Xpeng's EV deliveries are up 56% vs. 2021.

""We are accelerating customer deliveries of G9," CEO He Xiaopeng said in an Xpeng EV sales release Tuesday. "Logistics and transportation capabilities are all in place for a steady production ramp up beginning in November."

Xpeng stock gained 3.8% to 6.85 Thursday, near record lows.

Li Auto Sales

Li Auto sold 10,052 vehicles in October, down 13% vs. September and up 31% vs. a year earlier.

The startup was planning to discontinue the hybrid-electric Li One, its first model, in October. The baton passes to the new L9 SUV, also a hybrid. Deliveries of the new L8,, a scaled-down L9, will start this month, Li Auto said in Tuesday's EV sales release. Li did not break down October's tally by model.

In late November, Li will begin deliveries of the L8, a scaled-down L9. It also plans to bring out the L7 and more affordable L6 in the coming year.

Li Auto stock gained 2.6% to 16.75 Thursday. Shares hit two-year lows last week.

Futures: Jobs Report Key For Ailing Rally; Tech Titans Tumble

China EV Sales

Industrywide auto and EV sales data for October will likely be released next week. That will include estimates for Tesla's China sales. Tesla stock advanced 1% Tuesday after edging down 0.4% to 227.54 on Monday. TSLA is off 16-month lows but below key levels.

China's electric-car market stayed red-hot in the first nine months of 2022. China EV sales soared 83% in September, while overall car sales grew just 3%, a two-decade low, China Passenger Car Association data showed.

However, a possible economic slowdown could threaten growth. And fresh Covid-19 cases are breaking out while China vows to continue its ultrastrict "zero Covid" containment policy.

The Covid-19 curbs come even as China braces for an economic slowdown. Tesla and Ford slashed prices of the Model 3, Model Y and Mach-E in late October amid signs of softening demand in the world's largest market for electric cars. A Stellantis joint venture behind the Jeep brand will file for bankruptcy as China sales continue to falter, the Wall Street Journal said Monday.

China EV subsidies end on Dec. 31. That should provide a boost to sales as the year winds down, followed by weaker demand in January.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.