Chinese EV makers see March shipments increase
Chinese electric car makers Nio, Xpeng and Li Auto are facing several headwinds, including rising raw material costs and a Covid resurgence in China. However, they all showed an increase in delivery volumes in March.
Qilai Shen | Bloomberg | Getty Images
Chinese electric vehicle start-ups Nio, Xpeng and Li Auto delivered more cars in March than in February, although they have faced a number of challenges in recent weeks.
Chinese electric car makers are grappling with a rise in Covid cases in China, which threatens to disrupt production and deliveries, while raw material costs continue to rise. This has forced several automakers in China, from Tesla to Xpeng and Li Auto, to raise the prices of their cars.
The stock prices of the three companies, Nio, Xpeng and Li Auto, were significantly higher in pre-market trading in the United States.
Of the three, Xpeng delivered the most electric cars in March. The Guangzhou-headquartered automaker said it delivered 15,414 vehicles in March, up 148 percent from February. For the first quarter, Xpeng delivered 34,561 cars, a year-on-year increase of 159%.
Xpeng’s flagship P7 sedan surpassed 9,000 deliveries, a monthly record.
“The company attributes its strong first quarter delivery results to growing brand awareness and increased demand for its Smart EV products as well as the accelerated delivery of its large backlog from 2021 and new orders. received in 2022 after completing technology upgrades at its Zhaoqing plant in February,” an Xpeng spokesperson told CNBC.
Zhaoqing in southern China is one of Xpeng’s main production facilities.
Chinese electric vehicle start-up Li Auto reported a rebound in deliveries of its cars in February, but said production was hit due to a resurgence of Covid cases in China.
Li Auto, listed in the United States and Hong Kong, delivered 11,034 units of its Li ONE sport utility vehicle (SUV) in March, up 31% from February. For the first quarter, Li Auto said it delivered 31,716 vehicles, an increase of 152.1 percent year on year.
However, the company said production was affected “by shortages of some auto parts resulting from the recent upsurge in COVID-19 cases in the Yangtze River Delta region”, which includes the area where the plant is located. by Li Auto.
Last month, Li Auto said it would raise the price of its Li ONE car from 338,000 Chinese yuan ($53,147) to 349,800 yuan, effective April 1.
Li Auto is gearing up to launch its next car, the L9 SUV, on April 16 as competition in China’s electric vehicle market continues to heat up.
Nio said it delivered 9,985 vehicles in March, up 62.8% from February. The company delivered 25,768 vehicles in the first quarter of 2022, a 28.5% year-over-year increase. It was a quarterly delivery record for the electric vehicle maker.
Nio is the only company out of the three that has yet to raise the prices of its cars.
Next month, Nio will launch its new SUV called ES7.