Chinese EV sector thrives in January amid auto subsidies during Lunar New Year
China’s electric vehicle makers enjoyed a busy January as the extension of trade-in subsidies helped underpin sales during the usually quieter Lunar New Year holiday.
Sales at Geely Automobile Holdings Ltd., the centerpiece of Li Shufu’s auto empire, rose 25 per cent to a monthly record of 266,737 vehicles. Xpeng Inc. overtook US-listed peers Nio Inc. and Li Auto Inc. for the first time in more than two years by shipping 30,350 EVs last month, with its mass-market model Mona M03 helping drive the 268 per cent increase from last year. Li Auto delivered 29,927 cars in January, while Nio sold just 13,863 vehicles.
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Market leader BYD Co. delivered more than 296,000 cars in January, with overseas sales climbing to a record 66,336, despite worsening trade tensions between China and the EU and US, which have both imposed tariffs on Chinese EVs.
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The month in which Lunar New Year falls is traditionally a slow period for auto sales in China as people take time off to visit family and travel. The healthy demand is likely supported by the government renewing its cash-for-clunkers program which hands out rebates of up to 20,000 yuan ($2,760) to people who trade in old cars for new EVs or fuel efficient vehicles.
Not all EV brands were winners though, with state-owned manufacturer Guangzhou Automobile Group Co.’s electric car brand Aion suffering a 42 per cent decline in January sales. Legacy automaker Great Wall Motor Co. experienced a 22 per cent drop in deliveries.
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