China EVs: Leapmotor, Xpeng set the pace in August while Li Auto and Nio stumble

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Stellantis-backed Leapmotor hit record sales last month, while others like Li Auto and Nio struggle amid fierce competition and price war

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Leapmotor delivered 8,000 units of the C16 midsize SUV last month. Photo: Bloomberg

Daniel Renin Shanghai

Published: 7:03pm, 1 Sep 2024

Major Chinese electric vehicle (EV) makers reported mixed sales in August despite the lure of generous incentives to boost sales in the world’s biggest car market.

Leapmotor, backed by Stellantis, reported record deliveries, while sales at Li Auto and Nio fell amid escalating competition.

Leapmotor said on Sunday that it handed 30,305 cars to buyers, beating the previous record of 22,093 units by 37.2 per cent. It delivered more than 8,000 units of its midsize SUV, C16, which hit the market in July.

Li Auto, Tesla’s nearest rival on the mainland, however, saw deliveries drop 5.6 per cent month on month to 48,122 units.

“Nearly all EV builders were either reducing prices or conducting promotional activities, such as free charging services, to compete in the cutthroat market,” said Phate Zhang, founder of Shanghai-based electric-car data provider CnEVPost. “The rising EV penetration does not necessarily mean higher sales for every player.”

The mainland’s 50 or so EV assemblers have been embroiled in a discount war since late February amid mounting overcapacity worries in the market. However, the government’s cash subsidies to encourage EV ownership and companies’ massive investment to expand the charging infrastructure have spurred sales for some time now.

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Shanghai-based Nio’s deliveries in August fell 1.6 per cent month on month to 20,498 units, but the carmaker achieved monthly sales of 20,000 vehicles for the fourth month in a row.