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January sales surge at Chinese EV marques Xpeng, Li Auto and NIO in pursuit of Tesla

  • Xpeng and Li Auto say their sales more than doubled in January
  • Results impressive given that a reduction in government subsidy became effective from January 1, analyst says

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A Xpeng showroom in downtown Beijing. Photo: Simon Song
Lam Ka-sing
China’s leading electric vehicle (EV) makers recorded significant surges in sales in January, as they seek to close the gap with US rival Tesla, which said it would not release new models in 2022.
Xpeng and Li Auto on Tuesday said that their sales more than doubled last month, while NIO said its sales had jumped by a third. These firms are looking to gain a bigger market share in China, where sales are expanding rapidly and have set the stage for a roaring start to the Lunar New Year.

“The delivery data is in line with expectations, as January is normally a low season for car sales,” said Phate Zhang, founder of Shanghai-based technology portal CnEVpost. “None of the trio broke the previous monthly record in January, but the results still looked impressive, given the fact that a reduction in government subsidy became effective from January 1.”

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The ministry of finance announced in late December that cash subsidies would drop to 30 per cent in 2022 before being scrapped altogether next year. An all-electric car with a driving range of more than 400 kilometres is now eligible for a 12,600 yuan (US$1,981) subsidy. EVs priced at more than 300,000 yuan do not qualify for subsidies.

The sales numbers came after Tesla CEO Elon Musk said in an earnings call last week that the company would rather focus on coping with supply chain constraints this year than attract customers with new models. In contrast, the three Chinese brands have plans to introduce new models.

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Beijing-headquartered Li Auto delivered 12,268 Li ONE cars in January, a 128.1 per cent increase year on year. The cumulative deliveries of Li ONEs have reached 136,356 since the vehicle’s market debut.
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