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Chinese EV makers Li Auto, Xpeng and Nio post sales declines for second straight month, fuelling price-war worries
- The two straight months of declines ‘bodes ill’ for the market as a bruising price war may be imminent, sales executive says
- EV makers are grappling with fiercer competition this year amid a drop in demand and worries about severe overcapacity
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Daniel Renin Shanghai
Deliveries by major Chinese electric vehicle (EV) makers dropped for the second consecutive month in February, raising worries that a bruising price war may be imminent even though the month included an eight-day break in sales over the Lunar New Year holiday.
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Beijing-based Li Auto, mainland China’s nearest rival to Tesla, delivered 20,251 vehicles in February, down 35 per cent from January, following a decline of 38.1 per cent in the previous month. Nio, based in Shanghai, reported 8,132 deliveries, down 19 per cent month on month, compared to a January drop of 44.2 per cent. Guangzhou-headquartered Xpeng handed 4,545 vehicles to customers, down 44.9 per cent, after it posted a 59 per cent fall in January.
“Weak sales [in February] were expected, but a two-straight-month decline bodes ill for the Chinese electric car market where a new round of price cutting is taking shape,” said Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai. “Escalating competition in a slowing market will kick some underachieving players out this year.”
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Li Auto, Nio and Xpeng are viewed as China’s best response to Tesla because they offer intelligent vehicles featuring autonomous driving technology, digital cockpits and high-performance batteries.
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