Chinese electric vehicle startups Li Auto Inc. (LI) and XPeng Inc. (XPEV) have delivered strong September sales figures, showcasing continued growth despite the increasingly competitive landscape in the Chinese EV market. These reports come just ahead of Tesla Inc.’s (TSLA) upcoming global delivery update, adding further intrigue to the burgeoning EV industry.
Li Auto, based in Beijing, reported selling 53,709 EVs in September, representing a remarkable 48.9% year-over-year increase. The company also saw a significant 11.61% month-over-month growth in sales. For the third quarter, Li Auto delivered a total of 152,831 units, surpassing its previously guided range of 145,000-155,000 units. Xiang Li, Chairman and CEO of Li Auto, highlighted the growing dominance of leading brands in the Chinese NEV market, particularly in the segment exceeding RMB200,000. Li Auto attributed its record September deliveries to the steady increase in orders for its Li L series and Li MEGA models. The company is also aiming for a major milestone in October – the production and delivery of its one-millionth vehicle.
XPeng, based in Guangzhou, delivered 21,352 EVs in September, marking a 39% year-over-year growth and a significant 52.12% month-over-month increase. The company’s newly launched affordable electric sedan, the XPeng Mona M03, saw impressive initial demand, with over 10,000 units delivered in its first month. For the third quarter, XPeng reported deliveries of 46,533 units, exceeding its guidance of 41,000-45,000 units and representing a 16% year-over-year increase. XPeng has been expanding its global reach, having recently introduced its G9, G6, and P7 models to the Spanish and Portuguese markets after successful launch events in Madrid and Lisbon. Looking ahead, XPeng plans to unveil its AI-defined car, the XPENG P7+, in October. The company will also showcase its advanced AI technologies and new model lineup at the 2024 Paris Motor Show from October 14 to 21.
The Chinese EV market has been witnessing intense competition, with companies strategically undercutting rivals and introducing new models to cater to diverse market segments. However, the economic downturn has negatively impacted demand. Despite these challenges, China has shown a commitment to revitalizing its domestic economy through substantial stimulus measures, which could potentially boost the EV market’s growth trajectory.
Li Auto’s U.S.-listed ADRs closed Monday’s session down 0.50% at $25.65, while Xpeng ADRs closed down 4.25% at $12.18.
