EV sales in China soar to impressive levels

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Amid a Chip shortage and regulatory crackdowns from the Chinese government on private business, EV companies remain strong due to their sales numbers.

Electric Vehicle sales of China’s foremost manufacturers like Li Auto and Xpeng Inc. tripled in July compared to the same period a year ago. Nio Inc. also doubled its sales. This was helped by better than expected demand for electric energy vehicles in the world’s largest automotive market.

The increase in July deliveries comes when electric car manufacturers have been expanding their capacity in China, encouraged by the country’s new policies for promoting more eco-friendly vehicles.

Shares of Xpeng, listed in the United States, gained more than 8 percent to a two-week high of $44,12, while Li Auto went up 6.1% to a one-month high of $35,44, while the third EV manufacturer, Nio, increased as much as 4.7 percent to $46.78.

Nio, Li Auto, and Xpeng are American electric vehicle maker Tesla competitors, which dominates the EV market in the Asian giant. Tesla, in turn, reported more than $1b in profits this last quarter for the first time in its history.

While Tesla remains dominant, the number of deliveries reported last month is still significant. Nio, which sells the ES8 and ES6 electric SUVs, has reported the delivery of 7,931 units in July, increasing 124% from the year before. Deliveries were quadrupled in July 2020. Meanwhile, Xpeng, selling the P7 sedan and G3 SUV, reported its July deliveries soared 228% to 8,040 vehicles in all china. Last but not least, Li Auto, producer of the LI ONE line of Sport Utility Vehicles, delivered 8,589 units last month, an increase of a whopping 251%

These impressive sales numbers for Ev manufacturers come as a global recovery in vehicle sales is being threatened by a chip shortage that has forced many manufacturers around the globe to adjust assembly lines and shut down factories.

However, the outlook for the EV market remains positive as it is expected that the world’s top automotive markets will turn to alternative energies in approximately 12 years. This includes Europe and China, and most likely the United States as well.

Do you think the future is electric? Let us know below in the comments.

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