Some Chinese electric vehicle makers reported healthy deliveries in November, while others saw a moderation. However, both NIO (NIO, Financial) and Li Auto (LI, Financial) delivered fewer vehicles in November than in October, despite record sales from BYD (BYDDY, Financial), XPeng (XPEV, Financial) and Zeekr (ZK, Financial). )
BYD took over the leadership with 506,804 vehicles sold, up 67.9% year-on-year and up 0.8% from the previous month. This included 305,938 plug-in hybrids and 198,065 fully battery-electric vehicles (BEVs).
XPeng deliveries also rose to 30,895 vehicles, up from 52% a year earlier, mainly due to the success of the Mona M03 hatchback. EV rival Zeekr was equally impressive, selling 16,700 units, an increase of 81% compared to the same period last year.
On the other hand, Li Auto deliveries shrank 5.3% from October to 48,740, but registered an annual growth of 18.8%. Nio delivered 20,575 vehicles, a slight advance over the previous month’s performance, marking seven consecutive months above 20,000 vehicles sold, but lower than the previous month.
China’s competitive rivalry in electric vehicles is still intense, with Tesla competing on the new Model Y and year-end bonuses from domestic rivals like BYD, Nio and Li Auto. The company’s intention to put pressure on its suppliers to reduce prices by 2025 also shows that cost pressures will remain a major problem in the sector.
The trend analysis shows that the EV market is competitive but full of opportunities, as some manufacturers are seeing a turnaround in sales, the level of aggression in pricing strategies is still high and the demand for EVs is quite unstable.
This article first appeared on GuruFocus.
