Caixin
Oct 06, 2020 07:15 PM
BUSINESS & TECH

China’s Homegrown Electric-Car Makers Charge Ahead in September

The three U.S.-listed Chinese electric car upstarts — Nio Inc., Li Auto Inc. and Xpeng Inc. — all released September sales figures during the National Day holiday, with all three showing continued growing demand for new-energy vehicles (NEVs) following the Covid-19 pandemic.

New York Stock Exchange-listed Nio delivered 4,708 vehicles last month, up 133.2% year-on-year, setting a new monthly delivery record, marking seven months of consecutive year-on-year growth according to a statement released on Friday. The September figure brings Nio’s total deliveries during the third quarter of 2020 to 12,206 vehicles, representing a year-on-year increase of 154.3%.

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Nio did not release a third quarter earnings report with its record delivery record announcement. In the second quarter, the company recorded net losses of $166.5 million, representing a decrease of 64.2% from the second quarter of 2019. While its revenues were $526.4 million in the second quarter of 2020, representing an increase of 146.5% from the second quarter of 2019.

Five-year-old Li Auto, which went public on the Nasdaq in July as the second Chinese electric vehicle startup to list in the U.S. after Nio, delivered 3,504 Li ONEs in September, a monthly sales record since the company began delivering the model in December, the company said in a statement on Friday. The Beijing-based company’s deliveries during the third quarter of 2020 reached 8,660 units, representing a quarter-on-quarter increase of 31.1%. The Li ONE is Li Auto’s first model, which was rolled out at the end of 2019. The company says that it is planning to launch a premium model in 2022.

As of Sept. 30, Li Auto had 35 retail outlets in 30 Chinese cities and plans to expand its direct sales and servicing network across China, according to the company, which has yet to turn a profit. Its net loss reached 75 million yuan ($11 million) in the second quarter of 2020.

Guangzhou-based Xpeng, which followed in the footsteps of Nio and Li Auto to list in the U.S. in August, also made a new monthly delivery record in September with sales of 3,478 vehicles, representing a year-on-year increase of 145%, according to a statement released by the company on Sunday. In the third quarter of 2020, Xpeng delivered a total of 8,578 cars, up 266% year-on-year.

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Earlier this year, Xpeng started manufacturing its new P7 long-range electric sports sedan in its wholly owned factory in Zhaoqing, South China’s Guangdong province. The company is now building another manufacturing base in Guangzhou, capital of Guangdong province, which is supposed to be up and running by December 2022.

Like the other two U.S.-listed companies, Xpeng has yet to turn a profit. The company said in its prospectus that it made a net loss of $113 million on revenue of $142 million in the first half of 2020.

Contact reporter Ding Yi (yiding@caixin.com) and editor Marcus Ryder (marcusryder@caixin.com)

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