BYD more than tripled China EV sales in July after more than tripling Q2 sales, delivering on hopes for another huge month. Unlike its startup rivals, BYD also grew sales of electric vehicles month over month, defying industry headwinds.
On the back of robust EV demand, BYD has taken just the first seven months of 2022 to exceed its total vehicle sales last year, including combustion and electric cars. The Chinese EV giant has emerged as a far more potent rival to Tesla.
On Monday, July sales reports showed that Xpeng outpaced Li Auto and Nio again. Li Auto also announced that its 200,000th electric SUV rolled off the assembly line Monday, claiming that milestone came at record speed.
Nio, Xpeng and Li Auto all saw China EV sales rise solidly in July from a year ago, though down considerably vs. a strong June.
Headwinds in July included severe warm weather, which was said to have weighed on store traffic and test drives. Traditional automakers are also becoming more aggressive on the combustion vehicle side, while the startups are preparing to refresh their lineups new EVs, according to Deutsche Bank analysts.
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BYDDF Stock
BYD sold a record 162,530 new energy vehicles (NEVs) in July, up 222% vs. a year earlier and up 21% from June. The Warren Buffett-backed EV maker also more than tripled Q2 sales.
NEVs include fully electric vehicles, plug-in hybrids and fuel-cell vehicles.
The company's July total included 80,991 all-electric vehicles and 81,223 plug-in hybrid EVs, according to CnEVPost. BYD's NEV sales exceeded 100,000 units for the fifth consecutive month, defying the ongoing chip shortage, a Covid resurgence in China and other headwinds.
In the first seven months of 2022, BYD has sold 803,880 NEVs, vaulting 292% vs. the year-ago period. It discontinued vehicles powered entirely by internal combustion engines in March to focus on NEVs.
Notably, BYD has taken just seven months to exceed its total passenger vehicles sales in 2021. BYD sold 730,093 passenger vehicles — including combustion cars and NEVs — in 2021, up 75% year on year.
As its order backlog grows, BYD has been expanding capacity.
The company continues to expand internationally, sharpening its rivalry with Tesla. On Tuesday, 1,000 Yuan Plus crossovers reached Australia, where the right-handed version will be sold as the Atto 3. On Monday, BYD said it enter Germany and Sweden, with deliveries starting in Q4. In late July, BYD said it would enter Japan early next year.
On July 29, BYD launched the Seal EV, seen as a rival to the Tesla Model 3. The Seal reportedly undercuts the Model 3 in price, starting at RMB 209,800 ($31,130) vs. RMB 279,900 ($41,502) for Tesla's small sedan.
China is the world's fastest-growing market for electric cars.
The Tesla vs. BYD rivalry is poised to intensify. Both China auto giants and startups are growing their EV lineups and international footprint.
BYD stock fell 0.1% to 36.73, amid a broad rally in Wednesday's stock market trading. Shares are slightly below a rising 50-day line, working on a new consolidation.
TSLA stock rose 1.3% to 913.65, just above at the 200-day line after hitting resistance there this week. Tesla stock surged 32% in July on strong Q2 earnings.
Nio Stock
Nio delivered 10,052 electric vehicles in July, jumping 27% vs. a year earlier but down 22% vs. June.
July sales included 7,579 SUVs and 2,473 sedans. Nio didn't break down model-specific deliveries for the first time. But it suggested newer models were hurt by supply disruptions amid a Covid resurgence in that country.
"The production of the ET7 and the EC6 in July 2022 was constrained by the supply of casting parts," Nio said in Monday's release. However, Nio added it's working closely with supply-chain partners and expects production to accelerate in the rest of the current quarter.
Shanghai-based Nio was hit especially hard by Covid lockdowns, with sales generally lagging those of its startup peers so far this year.
In the first seven months of 2022, Nio has sold 60,879 EVs.
On Monday, Nio also announced 1,047 battery swap stations in China and more than 10 million battery swaps. It will release two new models in the third quarter.
Nio stock shed 1.9% Wednesday after rising 2.2% on Monday. Shares are just below their 50-day average and well below a falling 200-day line.
U.S.-listed China EV stocks, including Nio, have lagging relative strength lines. Most rallied in May and June, but tumbled in July as U.S. delisting fears rear up again.
Xpeng Stock
Xpeng delivered 11,524 EVs in July, leaping 43% vs. a year earlier to 11,524 but down 25% from June. July sales included 6,397 P7 sedans, 3,608 P5 sedans and 1,519 G3i compact SUVs.
Year to date, Xpeng has sold 80,507 EVs, more than doubling year over year. In a release Monday, Xpeng claimed the No. 1 rank among emerging China auto brands in terms of EV sales in 2022 thus far.
The EV maker reportedly missed Deutsche Bank's delivery estimates for July. Analysts at the firm also expect August sales to trend weaker.
The automaker will launch a new electric SUV, the G9, in September.
Xpeng stock fell 7.3% Wednesday after edging up 0.1% on Monday. Shares are significantly below the 50-day average.
XPEV stock is down nearly 9% for the week so far, significantly underperforming its startup rivals.
Li Auto Stock
Li Auto delivered 10,422 Li One hybrid SUVs in July, up 21% vs. a year earlier but down 20% vs. June.
"Today, the 200,000th Li One rolled off the production line," with the company's Monday's release touting its "record" production speed among Chinese EV startups. In fact, Li Auto reached that production milestone in less than three years after it started volume production. By comparison, the 200,000th Nio vehicle rolled off the assembly line in April, reaching that milestone in less than four years. Li Auto also claimed to have reached the 100,000-unit mark at record speed.
Li did not provide a year-to-date delivery number.
The automaker on Monday announced more than 50,000 orders for the L9 SUV, with more than half of those nonrefundable. The L9, Li's second model, launched in June and goes on sale in late August. Among popular features, the L9 boasts a self-developed autonomous driving system, the company says.
Li Auto stock fell 3.1% Wednesday after bouncing 3.8% on Monday. Shares are back below the 50-day line intraday. LI stock appears to be working on a new consolidation.
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China EV Sales Set To More Than Double
Retail sales of NEVs were expected to reach around 450,000 units in July, increasing 102.5% year over year, based on preliminary estimates from the China Passenger Car Association in late July.
But that would be down 15% from a record June, when new subsidies and pent-up demand from lockdowns spurred sales.
Booming EV giant BYD accounted for a huge share of NEV sales last month.
Reports in early July spoke of a Covid outbreak in Anhui province, where Nio and BYD have major operations. Newer reports suggested that severe heat weighed on store visits and test drives in July, while China's economy is still showing strain.
The latest Chinese media reports suggest that the EV supply chain is stabilizing, though Nio cited parts shortages for limiting production of its ET7 luxury sedan.
Meanwhile, a state council meeting confirmed a renewal of the purchase tax exemption for electric vehicles, according to a CnEVPost report late Friday. The exemption was set to expire at the end of 2022.
Beijing had strongly hinted at such a move in recent months.
