China’s electric vehicle (EV) market experienced a surge in September, with five out of the six largest EV makers setting new sales records. This resurgence, fueled by enticing discounts and promotions, saw the Chinese EV pack, led by BYD Company Limited, successfully revive demand. While Li Auto Inc and Xpeng Inc also enjoyed record sales months, Nio Inc was the only major Chinese carmaker to miss out on hitting record deliveries. However, even Nio saw its sales grow by a significant 35%.
BYD, in particular, continues its relentless pursuit of surpassing Tesla Inc. In September, BYD sold an impressive 419,426 NEVs, which encompasses both EVs and plug-in-hybrids (PHEVs). This marked the fourth consecutive month of record sales for BYD and was the first time they reached the 400,000 milestone in monthly sales. The company also achieved a remarkable feat by shipping 1 million vehicles in a single quarter.
Echoing the larger trend aimed at combating the EV slowdown, BYD also reported a substantial 86% year-over-year increase in hybrid sales. Simultaneously, EV sales saw a positive trend, rising 9% year-over-year and 11% from August.
Li Auto also had a month of outstanding sales, shipping a record 53,709 vehicles in September, representing a 48.94% year-over-year increase. This figure surpassed Li Auto’s previous record set in July by 5%. Leapmotor, backed by Stellantis N.V., also achieved its fourth consecutive monthly sales record. In September, Leapmotor delivered 33,767 NEVs, signifying a 113.7% year-over-year growth.
Beyond the EV sector, hybrid vehicle makers are emerging as winners in mainland China. While BYD’s success is rooted in its affordable EVs, the company is actively expanding its portfolio to include pickups and luxury models, posing a direct challenge to Tesla. Tesla, which is set to report its full third-quarter earnings on October 23rd, saw a rebound in sales after two consecutive quarters of decline. In the three-month period ending in September, Tesla produced 469,796 vehicles and delivered 462,890 of them. This translates to a 14.4% increase in production and a 5.8% growth in deliveries compared to the second quarter.
However, while Tesla’s rivals continue to set new records, Tesla reported a smaller-than-expected rise in third-quarter deliveries. Prior to releasing its full third-quarter report, Tesla will unveil its long-awaited robotaxi on October 10th, providing a glimpse into its future and its new identity as an AI and robotics company.
