Chinese electric vehicle (EV) makers Nio (NIO), Li Auto (LI), and XPeng (XPEV) reported year-over-year growth in August deliveries, signaling a rebound in EV demand within the world’s largest automotive market. In particular, Li Auto’s deliveries outperformed those of Nio and XPeng.
Meanwhile, BYD (BYDDY), a key competitor of the three companies, also posted solid growth in vehicle sales for August. It sold 373,083 new energy vehicles (NEVs) in August, up about 30% year-over-year.
Deliveries Rise Year-Over-Year in August
Li Auto delivered 48,122 vehicles in August, up 37.8% year-over-year. However, the figure was down 5.6% from July’s record sales of 51,000. Li Auto’s cumulative deliveries in 2024 reached 288,103 by the end of August. The company’s most affordable model, the Li L6, remains a key driver of its performance.
Moving to XPeng, it delivered 14,036 Smart EVs in August, representing a 2.5% increase year-over-year and a 26% increase over the prior month. The company has delivered 77,209 Smart EVs year-to-date. It should be noted that XPEV’s newly launched Mona M03 model is witnessing strong demand and is expected to bolster deliveries.
Similarly, Nio delivered 20,176 vehicles in August 2024, up 4% year-over-year but down 1.5% sequentially. Year-to-date, the company’s total vehicle deliveries reached 128,100.
EV Makers Navigate Headwinds
Despite encountering challenges such as a slowdown in overall EV demand and increasing price competition from Tesla (TSLA), these Chinese EV makers have successfully navigated the market challenges.
Moreover, government incentives and subsidies have made EVs more affordable for consumers, thereby driving demand. Additionally, the expansion of charging infrastructure across China has enhanced convenience for EV owners, boosting adoption.
Which Chinese EV Stock Is the Best?
TipRanks’ Stock Comparison tool shows analysts are bullish about Li Auto stock, as represented by a Strong Buy consensus rating. Meanwhile, analysts remain cautiously optimistic about NIO and XPEV stocks.
Moreover, analysts’ average price target on Nio stock suggests the highest upside potential, about 58.17% from current levels.
