Tesla’s Chinese rivals NIO, Xpeng report mixed sales fortunes in May amid global chip shortage

Xpeng’s sales rose 10 per cent month on month in May to 5,686 units, while NIO’s sales fell 5.5 per cent to 6,711 units in the same period

Citi raises its China electric car sales forecast to 2.52 million units this year, from 1.79 million units

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Shoppers walk past an XPeng showroom at Chamtime Plaza in Shanghai, China. Photo: Bloomberg

Published: 9:15pm, 1 Jun 2021Updated: 11:01pm, 1 Jun 2021

Chinese electric car start-ups NIO and Xpeng, Tesla’s rivals in China, reported mixed fortunes last month amid a semiconductor shortage that is roiling the global car industry, leaving analysts a bit underwhelmed.

Guangzhou-headquartered Xpeng posted a 10 per cent month on month sales growth in May, delivering 5,686 units, while Shanghai-based NIO delivered 6,711 vehicles last month, a 5.5 per cent decline compared to April, according to figures from the two New York-listed carmakers.

The numbers were far short of Tesla’s deliveries in April, which saw sales slump 27 per cent to 25,845, according to the China Passenger Car Association.

“The sales prove that they are yet to become a real threat to Tesla,” said Gao Shen, an independent analyst in Shanghai. “A large portion of China’s middle class electric vehicle buyers still view Tesla as their top choice.”

A NIO ES8 electric SUV is displayed at the Shanghai car show in April. Photo: Xinhua

NIO said its deliveries in May were “adversely impacted for several days due to the volatility of semiconductor supply and certain logistical adjustments.”

The company, however, maintained its delivery target of 21,000 to 22,000 vehicles for the second quarter. Given its April and May sales, NIO will have to deliver at least 7,187 cars in June to meet the low end of the target. NIO said it will be able to accelerate deliveries in June to make up for the delays from May.