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
“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.”
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.
“We have delivered over 10,000 Li ONEs for the third consecutive month, achieving a record for domestic branded premium vehicles priced above 300,000 yuan in China,” Yanan Shen, co-founder and president of Li Auto, said in a statement.
“Looking ahead, we will remain committed to investing in research and development to provide our users with products and services that offer greater safety, convenience and comfort,” Shen added.
Guangzhou-headquartered XPeng delivered 12,922 smart EVs in January, a 115 per cent increase year on year, exceeding the monthly delivery benchmark of 10,000 units for a fifth consecutive month. As of January 31, its cumulative smart EV deliveries had surpassed 150,000 units, as it continues to rapidly expand its network in China.
XPeng is also carrying out a technology upgrade at its Zhaoqing plant, taking advantage of a scheduled production downtime over the Lunar New Year holiday, running from the end of January to early February. The upgrade will allow it to accelerate deliveries from a significant order backlog carried over from 2021, and better serve increasing demand in the new year.