Tesla’s Chinese rivals Xpeng and Li Auto sell record cars in July as competition heats up in the world’s largest EV market

Li Auto’s sales jumped 251 per cent year on year in July to 8,589 units, while Xpeng’s sales surged 228 per cent to 8,040 cars

Guangdong-based Xpeng said last week that it has started building a new plant in Wuhan, Hubei province

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Customers look at an XPeng P7 electric car displayed at a showroom in Shanghai, China. Photo: Reuters

Published: 3:00pm, 2 Aug 2021Updated: 11:40am, 18 Aug 2021

Li Auto and Xpeng, Tesla’s Chinese rivals, reported record monthly deliveries in July, as electric-vehicle makers position themselves to take advantage of rising sales in the world’s largest EV market that are likely to double this year.

Nasdaq-listed Li Auto sold 8,589 units of its Li One SUV in July, a jump of 251.3 per cent year on year. It was also 11.4 per cent higher compared to June.

Xpeng, listed both on New York and Hong Kong stock exchanges, delivered 8,040 vehicles last month, which translated into a year-on-year increase of 228 per cent and a month-on-month rise of 22 per cent.

“Chinese drivers’ rising penchant for EVs offered the market leaders, including Tesla, a good opportunity to improve sales,” said Gao Shen, an independent analyst in Shanghai. “For China’s EV start-ups like Xpeng and Li Auto, a monthly sales of 10,000 units will be a meaningful threshold to target because after exceeding that level, a carmaker will be viewed as a powerful player in the automotive industry.”

Li Auto’s Li One model is displayed at a showroom Lujiazui, Shanghai. Photo: Shutterstock Images

Li Auto, Xpeng, and NIO are the three main Chinese smart-EV makers who have the potential to challenge Elon Musk’s Tesla in the mainland, according to industry observers.